The increasing energy demand and pollution due to fossil fuels influence the necessity of finding a appropriate alternative fuel for a cleaner environment and to sustain the usage of diesel engines in the automobile sector. This research focuses on such exploration of new alternative fuel (biodiesel) and to study its effect on emission and the performance parameters at a 1500 rpm constant speed on a 4-stroke, single-cylinder, variable compression ratio (VCR) diesel engine. The biodiesel from the sesbania aculeate seed oil is produced through the transesterification process. The blends of sesbania aculeate oil methyl ester (SAOME) with diesel mixture SAOME10, SAOME20, SAOME30, and SAOME40 are used as fuels at various engine loads (20% to 100%) and different compression ratios (CR) (16.5, 17.5 and 18.5). The emission and performance indicators of the proposed biodiesel are analyzed and an evaluation is made with diesel. The experimental outcomes demonstrate that for SAOME20, brake specific fuel consumption (BSFC) and brake thermal efficiency (BTE) are respectively 12.3% lesser and 8.21% higher than diesel under peak load at CR 18.5. Also the experimental investigation confirms a significant emission decrease in NOX, HC, and CO when there is an increase in CR and load.