The vast stores of biomass available in the worldwide have the potential to displace significant amounts of fuels that are currently derived from petroleum sources. Fast pyrolysis of biomass is one of possible paths by which we can convert biomass to higher value products. The wood pyrolysis oil (WPO), also known as the bio crude oil (BCO), has been regarded as an alternative fuel for petroleum fuels to be used in diesel engine. However, the use of WPO in a diesel engine requires modifications due to low energy density, high water contents, low acidity, and high viscosity of the WPO. One of the easiest way to adopt WPO to diesel engine without modifications is emulsification of WPO with diesel or bio diesel. In this study, a DI diesel engine operated with diesel, bio diesel (BD), WPO/BD emulsion was experimentally investigated. Performance and gaseous & particle emission characteristics of a diesel engine fuelled by WPO/BD 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.