Two main aspects of the transportation industry are pollution to the environment and depletion of fossil fuels. In the transportation industry, the pollution to the environment can be reduced with the use of cleaner fuel, such as gas-to-liquid fuel, to reduce the exhaust emissions from engines. However, the depletion of fossil fuels is still significant. Biodiesel is a non-toxic, renewable, and biodegradable fuel that is considered an alternative resource to conventional diesel fuel. Even though biodiesel shows advantages as a renewable source, there are still minor drawbacks while operating in diesel engines. Modern vehicle engines are designed to be powered by conventional diesel fuel or gasoline fuel. In this review, the performance, emissions, combustion, and endurance characteristics of different types of diesel engines with various conditions are assessed with biodiesel and blended fuel as well as the effect of biodiesel on the diesel engines. The results show that biodiesel and blended fuel had fewer emissions of CO, HC, and PM but higher NOx emissions than the diesel-fuelled engine. In the endurance test, biodiesel and blended fuel showed less wear and carbon deposits. A high concentration of wear debris was found inside the lubricating oil while the engine operated with biodiesel and blends. The performance, emissions, and combustion characteristics of biodiesel and its blends showed that it can be used in a diesel engine. However, further research on long-term endurance tests is required to obtain a better understanding of endurance characteristics about engine wear of the diesel engine using biodiesel and its blends.