The usage of conventional fossil fuels is reducing day by day due to the overwhelming use of business and personal automobiles for transportation, delivery, and ambulance. Factories also require conventional fuels to run their machines, which serve the primary purpose of production and factory operation. As a result, conventional fuels have a wide range of applications in our daily lives. However, there are certain downsides to utilizing traditional fuels, such as increased pollution, which adds to an increase in the temperature of the globe, causing global warming. Alternative fuels not only minimize pollution but also do not impair vehicle performance. There are other forms of alternative fuels available, including biodiesel, electricity, and solar energy, which have already gained popularity. This paper focuses on SME (Soybean Methyl Ester) as an alternative biofuel and provides a full review of the fuel by running it through an engine virtual simulation. The biofuel is combined with 20% and 80% diesel mixtures. The virtual simulation revealed that the brake thermal efficiency (BTE) and Brake Specific Fuel Consumption (BSFC) of diesel and SMEB20 is nearly identical. SMEB20 emit more NOx and CO2 than diesel under all load whereas emit less particulate matter (PM) and smoke emission than diesel under all engine load.