The globe is in search for an upgraded and compatible alternative of diesel to triumph over pollution and its limited availability issues. Researchers are using biodiesel from various edible and non‐edible oil sources to reduce environmental footprint of diesel. This article compares the performance and emission characteristics of diesel engines fueled by edible and non‐edible oil biodiesel. In this work, five biodiesels (methyl esters of microalgae, jatropha, karanja, soybean, and sunflower) are tested and transesterification is used to produce methyl esters to optimize their physiochemical properties. It is observed that all the properties lie in tolerance limits. To examine the compatibility of the proposed methyl esters two performance characteristics, brake thermal efficiency and brake specific fuel consumption are examined. Further, the emission characteristics such as nitrogen oxides, carbon monoxide, hydrocarbons, and carbon dioxides are investigated. To validate results the blend characteristics are compared to diesel. The relative analysis revels that the brake thermal efficiency is declined by 8.87% as compared to diesel whereas the brake specific fuel consumption is increased by 4.28%. The carbon monoxide and hydrocarbon levels are decreased by 7.32% and 20.56% whereas nitrogen oxides and carbon dioxide levels are increased by 7.47% and 4.80%, respectively. The analysis infers that microalgae biodiesel gives adequately better characteristics.