At present every country is facing two major challenges namely energy crisis and environmental degradation. To meet these twin problems of fuel oil and air pollution caused by fossils fuels, alternative renewable clean burning fuel need to be explored. In this project, plant species, like lemon grass (cymbopogen citratusis) is discussed as source of oil for bio-diesel production. The bio-diesel that is produced from lemon grass through Transesterification process is used as a fuel. Performance test was conducted and compared with diesel. The emission characteristics were analyzed by varying load for diesel and biodiesel blends. The combustion test carried out for the best blend, i.e. pressure crank angle diagram drawn for best blend and also variation of pressure for different loads for the best blend is plotted on p-v diagram. The experimental results show that the brake thermal efficiency of all the blends is slightly lower or nearly equal when compared to