Recently, we have a lot of interest in alternative fuels to provide energy independence from oil producing country and to reduce exhaust emissions for air pollution prevention. Biodiesel, which can be generated from natural renewable sources such as new or used vegetable oils or animal fats, may be used as fuel in diesel engine of compression ignition engine. In this paper, the test results on specific fuel consumption and exhaust emissions of neat diesel oil and biodiesel blends(10 vol.% biodiesel and 20 vol.% biodiesel) were presented using four stroke, direct injection diesel engine, especially this biodisel was produced from soybean oil at our laboratory. This study showed that Soot and CO emission were decreased as the blending ratios of biodiesel to diesel oil increased, on the other hand NOx emission was slightly increased because of the oxygen content in biodiesel. Also, the biodiesel blends yielded slightly higher specific fuel consumption than that of diesel oil because of lower heating value of biodiesel.