Fossil fuels are commonly used fuel for automobiles. The reserve stock and exhaust gas emission of fossil fuel cause a serious problem. So there is a need of an alternative ecofriendly fuel. Biodiesel is a renewable fuel produced from plant and animal material by esterification. Esterification is an acid catalyzed reaction that converts free fatty acid (FFA) of oil into triglycerides. Transesterification is base catalyzed reaction they converts triglycerides into mono alkyl esters. The main problem of biodiesel is its high cost which could be reduced by use of less expensive feed stock. Palm fatty acid distillate (PFAD) is a waste from extraction of palm oil. PFAD is used for production of biodiesel. The calorific value of PFAD biodiesel is 38600MJ/kg while density is 879kg/m3, flash point is 147°C, viscosity is 3.96 mm2/s and cetane number is 49. A single cylinder, 4 stroke, water cooled diesel engine of Kirlosker Oil Engine is used for evaluating performance of PFAD biodiesel blends and diesel. The engine performance for various PFAD biodiesel blends at various loads are comparatively equal to that of diesel fuel. Brake power of various blends is comparatively equal to brake power of diesel. Brake Thermal Efficiency increases comparatively for 50% PFAD blends. Specific Fuel Consumption for PFAD blends is slightly higher than diesel. Indicated power of PFAD blends is less than indicated power of diesel.