This paper, is about the test on the operating performance of diesel engine by using of soybean oil which farmers could supply in their farm yard. The diesel engine used is a swirl-chamber type, four stroke cycle with single cylinder, air cooling and its rated horse power is 2 PS per 1300 rpm. Several results obtained are as follows; 1. The starting performance of diesel engine with soybean oil is almost the same as that with light oil. 2. The variation of engine speed according to various engine load is small when soybean oil is used compared with light oil. It is considered that soybean oil is desirable for the purpose of industerial power machine fuel. 3. The specific fuel consumption increases approximately 10 percent high in the condition of rated horse power and maximum horse power and shows less or same during the load test in low velocity, when soybean oil is used 4. Though the brake thermal efficiency in the condition of rated horse power and maximum horse power is inclined to decrease when soybean oil is used compared during the load test in low velocityt shows good inclination.