Biodiesel is a renewable and sustainable alternative fuel that is derived from vegetable oils and animal fats. In this paper an experimental investigation is conducted to evaluate the use of soybean oil methyl ester (biodiesel) in the diesel fuel at blend ratios of B0, B2, B5 and B10. In this study, the performance and emissions characteristics of conventional diesel fuel and biodiesel fuel blends were compared. The tests were performed at steady-state conditions in a direct injection diesel engine with 90 kW power that was equipped with EGR and with no modification of calibration. The experimental results of brake-specific fuel consumption (BSFC), torque and exhaust temperature as well as carbon dioxide (CO2), smoke, nitrogen oxide (NOx), carbon monoxide (CO) and unburned hydrocarbon (UHC) emissions were presented and discussed. The results of engine performance parameters at different conditions (different load and engine speed) showed that a negligible loss of engine power and a significant increase in brake specific fuel consumption due to lower heating value of biodiesel. Smoke, CO and HC emissions were decreased by increasing blends of soybean oil as compared to pure diesel. However the increase in engine NOx and CO2 emissions were observed with the increase of biodiesel percentage in the blended fuel.