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Due to the depletion of world , and the increasing of exhaust gas emission, further efforts on the research to seek for new energy and reduce the exhaust gas emission have been made to fulfill the huge energy demands today. From this aspect, Biofuel has been found as the most promising fuel for its energy contribution and emission reduction. In this research, Jatropha Curcas oil (JO) has been chosen for using in CIE, DI engine. JO is motivated to use in diesel engine because of its several advantages such as non-edible oil, available in tropical areas, biodegradable and low cost compared to other fuels. In this experiment, the effect of JO on the engine performance, durability, combustion and exhaust gas emission has been investigated. From the experiment test, the blend of JO is found to be suitable for diesel engine and is used in durability test. The high viscosity of JO combined with the phosphorous content and other impurities have resulted to the unsatisfied effect on the engine components and led to search for further improvement on fuel quality. The degumming process is taken and Degummed J.Curcas oil (DJO) is used in the combustion and exhaust gas emission test to reinvestigate the effect of this fuel on engine combustion and emission. Evidently, the DJO is found to be promising for the application on diesel engine.