Fossil fuels are quickly draining on a daily basis, causing fuel product prices to increase throughout the world. There is a crucial need to develop new alternate fuels from various sources that meet our daily requirements, like industries, mining, building construction, transportation, electric power generation from rural areas, etc. In the present study, mono-use low density polyethylene (LDPE) was successfully transformed into a liquid form of hydrocarbon fuel with fly ash-supported catalytic pyrolysis. The ratio of 0.1 with reference to catalyst-to-feedstock was fixed for the preparation of waste plastic oil (WPO) using batch-type pyrolysis reactors. About 180°C was the temperature at which the extracted crude oil was segregated. The diesel fuel's properties and those of the WPO fuel were compared and evaluated. Experiments were carried out using diesel-WPO mixed fuel (10%, 20%, 30%, and 40%) in a multi-cylinder, water-cooled Common Rail Direct Injection (CRDI) diesel engine. Additionally, the impact of the compression and mixing ratios on performance, emission characteristics, and combustion was studied. We observed significant improvement in the results of BTE and BSFC for the tested fuel blend, D80WPO20, compared to other blends. Additionally, it has been demonstrated that the emissions of CO, HC, and NOx rise with an increasing fuel mixing ratio. Based on the analysis carried out on performance and emissions, it was determined that D80WPO20 was the best combination.