Rising fossil-fuel prices and associated environmental pollution with their use have resulted in increased global interest in biodiesel production and use. The quest for bio-fuels has therefore been boosted throughout the world to protect the global environment and substitute bio-diesel fossil fuels. The objective is to evaluate the seed oil of cotton to be used as an alternative fuel. Cottonseed oil has diesel-like fuel properties. Cottonseed oil is mixed with diesel in different proportions viz 10%, 20%, 30%, 40% and tested in a single-cylinder diesel engine with exhaust gas recirculation. Bio-diesel is produced from cottonseed oil through a chemical process called transesterification. The country will face two major challenges in the next millennium, namely the energy crisis and the degradation of the environment. The day's weeping need is to have power, which means gas, more oil, and cheaper fuels in simple terms. The ever-increasing spending on imports of fuel oil is causing people's economic instability, price rises, and misery. In addition, grooving use of automobiles in our major metropolitan cities causes rapid degradation of the air environment due to vehicle exhaust pollution. There has been a growing demand for petroleum fuels over the past few years, the least petroleum fuels are stored fuel, extracted from the earth. With the petroleum fuels currently known and their increasing demand for consumption, it is feared that they will not last long. The performance and emission characteristics are calculated in this experimental with exhaust gas recirculation. It is investigated the viability and suitability of bio-diesel as an alternative diesel engine fuel with exhaust gas re-circulator. By comparison, the performance characteristics appear to be improved with the use of cottonseed oil for brake power, total fuel consumption, specific fuel consumption, and thermal efficiency, and NO and NOx are reduced.