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The present work explores the use of argemone mexicana (non-edible and adulterer to mustard oil) biodiesel in multicylinder compression ignition, indirect injection engine. Argemone Mexicana biodiesel was produced by transesterification process and the important physico-chemical properties of various blends were investigated. Blends of diesel/biodiesel (AB10, AB20, AB30 and AB40) were prepared and used for analysing the engine performance and emission characteristics at varying loads (0, 25, 50 and 75%) and speeds (2500–4000 r/min). The results show improvement in indicated thermal efficiency and indicated specific fuel consumption with increased proportion of biodiesel in diesel, when compared to conventional diesel. In addition, exhaust emissions such as carbon monoxide, unburnt hydrocarbon and smoke opacity were significantly reduced by AOME/diesel blends. The improvement in engine performance and exhaust emissions were observed up to 30% blending of AOME/diesel. Beyond that, higher blend (AB40) showed deterioration in performance characteristics in contrast to AB30 but still better as compared to conventional diesel.