The present study reports on an investigation of teak sawdust pyrolysis oil blended with commercial diesel in a small four-stroke compression ignited engine. The engine performance and emissions were evaluated. The teak sawdust pyrolysis oil was obtained from a single-stage fixed bed pyrolysis reactor at 600 °C. Its physicochemical properties were characterized and found to be acceptable for the engine. Teak sawdust pyrolysis oil blends with diesel at the ratios of 10%, 25%, and 50% by mass were utilized. The small engine was tested at constant speeds from 800 to 2600 r/min. 25% teak sawdust pyrolysis oil blend at 2000 r/min was found to have better brake thermal efficiency with lower brake-specific fuel consumption compared to the other teak sawdust pyrolysis oil blends. Meanwhile, the highest engine load was obtained at 50% teak sawdust pyrolysis oil blend and 2600 r/min to be 8 kW. Furthermore, the emissions of CO, CO2, and hydrocarbon at 50% teak sawdust pyrolysis oil and 2000 r/min were slightly lower than other teak sawdust pyrolysis oil blends, no NOx detection in tested fuels, moreover, at 2600 speed, the smoke opacities of the fuels show lower than those the others. It was noted that a blend of 25% teak sawdust pyrolysis oil with diesel was suitable for the small engine (at 2000 r/min) in terms of performance and CO, CO2, and NOX emission for sustainability in agriculture and rural areas.