Plastic waste is a rich source of hydrocarbons that can be converted into bio-oil through pyrolysis. In this study, bio-oil was produced by pyrolysis of waste-polypropylene using spent FCC catalyst. Gas chromatography-mass spectrometry (GC-MS) analysis revealed that catalytically produced oil has the majority of compounds in the hydrocarbon range of C6-C18. The catalytic pyrolysis oil was blended with conventional fuel (diesel) to extensively investigate its suitability as a fuel substitute in a single-cylinder, four-stroke, 3.5kW, diesel internal combustion (IC) engine. Furthermore, four fuels, i.e., CF100PO00 (pure diesel), CF90PO10 (10% v/v pyrolysis oil blended with diesel), CF85PO15 (15% v/v pyrolysis oil blended with diesel), and CF80PO20 (20% v/v pyrolysis oil blended with diesel), were tested in IC diesel engine for performance, combustion, and exhaust emission analysis at 1500rpm. The tests were carried out at five loads, i.e., 1, 5, 10, 15, and 20 Nm. It was found that CF90PO10 produced 6.61% higher brake thermal efficiency (BTE), whereas CO2 exhaust emission decreased by 20% for CF80PO20 with respect to the pure diesel. Diesel blends with plastic pyrolysis oil can be a promising biofuel to improve engine performance and combustion characteristics without any significant engine modification.