Fast pyrolysis of biomass is one of the most promising technologies for converting biomass to liquid fuels. The pyrolysis oil, also known as the bio crude oil (BCO), have been regarded as an alternative fuel for petroleum fuels to be used in diesel engine. However, the use of BCO in diesel engine requires modifications due to low energy density, high water contents, low acidity, and high viscosity of the BCO. One of the easiest way to adopt BCO to diesel engine without modifications is the use of BCO/diesel emulsions. In this study, a diesel engine operated with diesel, bio diesel (BD), and BCO/diesel emulsion was experimentally investigated. Performance and emission characteristics of a diesel engine fuelled by BCO/diesel emulsion were examined. Results showed that stable engine operation was possible with emulsion and engine output power was comparable to diesel and bio diesel operation. Long term validation of adopting BCO in diesel engine is still needed because the oil is acid, with consequent problems of corrosion especially in the injection system.