Bio-diesel manufactured from vegetable oils, animal fats and used cooking oils is an alternative fuel for diesel engines. It offers many advantages such as renewable, energy efficient, nontoxic, sulfur free and bio-degradable, and also offers cleaner combustion and reduces global warming gas emissions. The present work reports on the preparation of bio-diesel (methyl esters) from selected edible and non edible oils and their performance and emission characteristics. The experiments are carried out in three stages on a Single cylinder kirlosker diesel engine which is commonly used in agricultural sector. In the first stage, tests are carried out by fuelling the diesel engine with tallow oil methyl ester (TME) and its diesel blends. In the second stage, experiments are conducted by fuelling the diesel engine with bio-diesel with LPG blends. The engine is properly modified to operate under dual fuel operation using LPG as the blend fuel along with Diesel and TME as ignition source. Bio-diesel blended with LPG shows low emissions when compared to other blends.