This paper examines the performance and emission characteristics of biodiesel produced from edible oil source (palm) and non-edible oil source (Jatropha) and compared that with fossil diesel fuel. Only 20% palm and 20% Jatropha biodiesel (described by PB20 and JB20 respectively) were examined because it has been suggested by the commercial company that up to 20% biodiesel can be used in a diesel engine without any engine modification. The physical and chemical properties of PB20 & JB20 are also presented and compared with diesel fuel (B0). The performance of these fuels and their emissions were measured in a multi-cylinder diesel engine at different engine speeds and at full load condition. The test results indicated that both PB20 and JB20 fuels produces slightly lower brake powers and higher brake specific fuel consumption compared to diesel fuel. Engine emission results indicated that the PB20 and JB20 fuel reduces the average emissions of carbon monoxide (CO) and hydrocarbons (HC). However, the PB20 and JB20 fuels slightly increases nitric oxides (NO) emissions compared to diesel fuel. Although PB20 have slightly better emission performance than JB20 biodiesel, JB20 biodiesel should be used in unmodified diesel engines to meet the global energy demand and to reduce emissions into the atmosphere because it does not create food versus fuel conflict.