After the successful implementation of B5, 5% palm (Elaeis guineensis) based biodiesel, in Malaysia on June 1, 2011, the Malaysian government is now looking to phase out B5 by replacing it with B10 or even a higher blending ratio. Being non-edible feedstock, jatropha (Jatropha curcas) can play a vital role along with the existing palm oil. This experiment was conducted in a four-cylinder diesel engine fuelled with B5, 10%, and 20% blends of palm (PB10 and PB20) and jatropha (JB10 and JB20) biodiesel and compared with fossil diesel at full load and in the speed range of 1000 to 4000 RPM. The brake power was decreased on average 2.3% to 10.7% while operating on 10% and 20% blends of palm and jatropha biodiesel. An average of 26.4% BSFC increment was observed for PB20 and JB20 blends. An average of 30.7% carbon monoxide (CO) and 25.8% hydrocarbon (HC) emission reductions were found for 20% blends. On average, the nitrogen oxides (NOx) emission is decreased by 3.3% while operating on PB10 and PB20 blends, whereas it is increased by 3.0% while operating on JB10 and JB20 blends.