Biodiesel has attracted a lot of attention as a possible replacement for traditional fuels due to the limited supply of fossil fuels and the growing concern about emissions of greenhouse gases. It is renewable and produces less hazardous emissions when burned. Enhancing biodiesel production is imperative to meet the escalating demand for eco-friendly fuels, serving as a remedy for the rising costs and dwindling accessibility of petroleum. This study aims in boosting neem biodiesel production specially in dry and unproductive soil regions and improving engine power using neem oil biodiesel, especially using lower blends. This study is in line with the initiatives that promote sustainable energy growth by gradually increase biodiesel blending from 15% to 30% in the near future. This research delves into the manufacturing of biodiesel from neem seeds and impact of its blends on the efficiency and emissions of compression ignition engines when combined with regular fuel. The biodiesel was produced using the transesterification method.Three distinct blends, B10, B15, and B20, were prepared by blending neem biodiesel with regular diesel. When testing engine performance, these mixtures were compared against pure diesel fuel. The specific fuel consumption and brake thermal efficiency of all blend combinations improved with increasing load. In comparison to pure diesel, there were also decreased percentages of hydrocarbons (HC), carbon monoxide (CO), and smoke opacity. There was an increase in nitrogen oxides with increasing load for all mixes as compared to pure diesel. The research results highlight neem biodiesel as a practical and efficient alternative to conventional diesel fuel due to its ability to enhance engine efficiency and lowering emissions.