The experimental investigation offers a comprehensive study of DI diesel engine performance using bio-diesel from mustard oil blends with kerosene. The vegetable oil without trans-esterification reaction have been blended with kerosene oil by volume in some percentage like 20%, 30%, 40% and 50% which have been named as M20 (20% mustard, 80% kerosene), M30 (30% mustard, 70% kerosene), M40 (40% mustard, 60% kerosene) and M50 (50% mustard, 50% kerosene). The properties of the bio-fuel blended with kerosene have been tested in the laboratories with maintaining different ASTM standards. Then a four stroke, single cylinder, direct injection diesel engine has been mounted on the dynamometer bed for testing the performance of the engine using the bio-diesel blends. Several engine parameters like bsfc, bhp, break mean effective pressure, exhaust gas temperature, lube oil temperature, sound level etc. have been determined. A comparison has been made for engine performance of different bio-diesel blends with kerosene with the engine performance of diesel fuel.