Increasing oil prices and global warming activates the research and development of substitute energy resources to maintain economic development. Due to gradual depletion of world petroleum reserves and the impact of environmental pollution, there is an urgent need for suitable alternate fuel for use in diesel engines. The resources of alternative energy are environment friendly but they require to be explored on different situations for their advantages, disadvantages and specific application. Thus this experiment was performed to investigate the performance characteristics of stationary diesel engine using blends of Jatropha oil, Kerosene and Diesel. The outcomes under various parameters were believed to be close to that of diesel fuel only. Different diesel engine parameters such as brake power, brake thermal efficiency, brake specific fuel consumption, brake mean effective pressure, volumetric efficiency etc. have been determined and they were compared with diesel fuel.