The enormous increase in the use of fossil energy sources throughout the world has caused severe air pollution and a depletion of energy. Besides, it seems very difficult to comply with the upcoming stringent emission standards in vehicles. In order to develop low emission engines, research on better qualified fuels as alternative fuels to secure high engine performance becomes a more important issue than ever. Since sulfur contained in diesel fuel is transformed in sulfate-laden particulate matters when a catalyst is applied, it is necessary to provide low sulfur fuels before any Pt-based oxidation catalysts are applied. But the excessive reduction of sulfur levels may cause the lubricity of fuel and engine performance to degrade. In this aspect, biodiesel fuel derived from rice bran is applied to compensate viscosity lost in the desulfurization treatment. This research is focused on the performance of an 11,000cc diesel engine and the emission characteristics by the introduction of ULSD(Ultra Low Sulfur Diesel), BD20(Diesel 80%+Biodiesel 20%) and a diesel oxidation catalyst, where BD20 is used to improve the lubricity of fuel in fuel injection systems as fuel additives or alternative fuels.