In this study, the combustion characteristics and emissions of two different petroleum diesel fuels (No. 1 and No. 2) and biodiesel from soybean oil were compared. The tests were performed at steady state conditions in a four-cylinder turbocharged DI diesel engine at full load at 1400-rpm engine speed. The experimental results compared with No. 2 diesel fuel showed that biodiesel provided significant reductions in PM, CO, and unburned HC, the NO(x) increased by 11.2%. Biodiesel had a 13.8% increase in brake-specific fuel consumption due to its lower heating value. However, using No. 1 diesel fuel gave better emission results, NO(x) and brake-specific fuel consumption reduced by 16.1% and 1.2%, respectively. The values of the principal combustion characteristics of the biodiesel were obtained between two petroleum diesel fuels. The results indicated that biodiesel may be blended with No. 1 diesel fuel to be used without any modification on the engine.