Present days, I.C engines are the fundamental parts of shipping and automatic farming system, etc. Hence there is an exponentially upsurge in utilization of Diesel and gasoline products. At the same time Diesel is an exhaustive source of energy and recent pitch in Diesel prices have focused interest in bio-fuels and also it has resulted that biodiesel-oiled engines produce comparatively fewer CO, unburned HC and smoke emissions, but higher emissions of NOx. Exhaust Gas Recirculation is observed as best technique to reduce NOx emission in recent days as the flame-temperature inside the cylinder decreases. A one-cylinder, H2O cooled with constant speed DICI engine was used for the research. In exhaust gas quantity of CO, HC, NOx and smoke opacity was determined to estimate the emissions and to assess performance of test-rig BTE, BSFC, Air/Fuel ratio, ME, VE and EGT parameters were considered. Both for base and combination of PME performance and emission parameters were evaluated at 20% EGR, CR 17.5 and FIP 200 bar. Collaboration of EGR with combination of PME increased concentration resulted in slightly reduced BTE, increased BSFC, decreased Air/Fuel ratio, decreased VE, increased EGT, minute decrement in ME and absolute lower NOx emissions, little increase in HC and small increment in smoke opacity. Overall, it is practical that at full load PME60 has similar or significant impact on performance and emission variables compared with baseline.