Homogenous charge compression ignition (HCCI) is a technology for concurrently reducing nitrogen oxides (NOx) and particulate matters (PM) emissions. Since, the pure HCCI lags in control over combustion phasing, Pre-mixed charge compression ignition (PCCI) method is proposed. To achieve partial homogeneity in PCCI combustion, the air is pre-injected with fuel. The main injection is required for the combination to take place. This paper investigates the impact of using the varying percentages and types of bio-diesels for the constant speed genset application engine. The paper first discus the effect of various ratios of diesel and biodiesel mixtures on the performance parameters like engine power, specific fuel consumption (sfc) and the break thermal efficiency. These effects are caused by the combustion happening inside the combustion chamber which can be seen in pressure, temperature and heat release curves. The result of the simulation finally discusses the formation of NOx and PM emissions during the combustion. These results also provide guidelines for actual testing of the engine with bio-diesel.