Vegetable oils of fer an advantage of comparable fuel properties with diesel. Due to considerable pressure on edible oils in India, shortterm performance test on diesel engine was evaluated using karanja oil as a fuel and its blends with diesel. The calorific value of karanja oil was found as 92.95 per cent on volume basis of diesel. It was found that karanja could be easily substituted up to 40 percent in diesel without any significant difference in power output, brake specific fuel consumption and brake thermal efficiency. The performance of engine with karanja oil blends improved with the increase in compression ratio from 16:1 to 20:1.