An experimental study has been carried out for Jatropha biodiesel blended with diesel used in single cylinder diesel engine. Jatropha biodiesel is obtained from Jatropha oil by tranesterification process. Blending of Jatropha biodiesel with diesel in maximum possible proportion helps to reduce the consumption of diesel fuel. In this study, the effects of parameters' i.e. load, blend proportion and compression ratio are taken as variable for optimization. As the experiment required simultaneously optimization of three parameters with three levels, taguchi method of optimization is used in this experiment. The results of the taguchi experiment identifies that 0% blend ratio, compression ratio 18 and engine load 10kg are optimum parameter setting for lowest bsfc. Engine performance is mostly influenced by engine load and is least influenced by blend ratio. Confirmation experiment was done using optimum combination showed that bsfc was found by experiment is closer to the predicated value.