Increased environmental awareness and depletion of fossil petroleum resources are driving industry to develop alternative fuels that are environmentally more acceptable. Trans esterified vegetable oil derivatives called 'biodiesel' appear to be the most convenient way of utilizing bio-origin vegetable oils as substitute fuels in diesel engines In this project esterified Nerium oil is used as an alternate fuel. The experiments were conducted for studying the Performance, Emissions, Noise and Combustion characteristics of diesel engine with Nerium blends. The Nerium oil blends are in percentage of 20%, 40%, 60%, 80%, and W0% of Nerium oil to 80%, 60%, 40%, 20% & 0% of diesel. From this project it is concluded that among all nerium and diesel blends 20% of nerium and 80% of diesel blend gives better performance nearing the diesel. When comparing the emission characteristics HC, CO is reduced when compared to diesel, however NOx emission is slightly increased when compared to diesel. At present neither Nerium oil nor bio-diesel of Nerium oil is available in the market. Hence for our work, well grown Nerium seeds are collected from different parts of Tamil Nadu (India). Approximately 16 liters of oil is obtained from the 45 kgs of nerium seed. Then after proper filtration, esters of Nerium oil are prepared using the bio-diesel plant available in the department. Hence Nerium blend can be used in existing diesel engines without compromising the engine performance. It also describes the usage of non-edible oil to a greater extent.