Recently, biomass application as a renewable energy source is increasing worldwide. However, its availability differs in dependence on the location and climate, therefore, agricultural residues as cow dung (CD) are being considered to supply heat and/or power installation. This paper aims at a wide evaluation of CD fuel properties and its prospect to apply in the form of pellets to direct combustion installations. Therefore, the proximate, ultimate composition and calorific value were analyzed, then pelletization and combustion tests were performed, and the ash characteristics were tested. It was found that CD is a promising source of bioenergy in terms of LHV (16.34 MJ·kg−1), carbon (44.24%), and fixed carbon (18.33%) content. During pelletization, CD showed high compaction properties and at a moisture content of 18%, and the received pellets’ bulk density reached ca. 470 kg·m−3with kinetic durability of 98.7%. While combustion, in a fixed grate 25 kW boiler, high emissions of CO, SO2, NO, and HCl were observed. The future energy sector might be based on biomass and this work shows a novel approach of CD pellets as a potential source of renewable energy available wherever cattle production is located.