This study offered a comprehensive investigation on engine performance and emission characteristics of Kirloskar make tangentially vertical (TV1) model single-cylinder direct injection diesel engine fuelled with diesel as a benchmark fuel. Steam distilled orange oil was converted into orange oil methyl ester (OME) by means of transesterification process. The physical and chemical properties of fuels were measured and conformed to ASTM biodiesel standards and compared with diesel. Likewise, the chemical compositions of the prepared biodiesel were estimated by using GC-MS analysis. OME comprises of 86.37% of (E)-3-propylidenecyclopentene (C8H12) in the maximum range. The presence of free fatty acids such as linoleic acid, palmitic acid and myristic acid in OME permits it to be the acceptable renewable resource for the production of biodiesel. Further, the work was progressed with the addition of oxygenated additives like ethanol and diethyl ether to OME to attain the improved fuel properties. Five and 10% volume of ethanol and diethyl ether were added to OME as oxygenated additives respectively. OME10DEE showed higher performance characteristics than diesel and OME blends. Further, a significant reduction in HC, NOx and smoke emission was noticed with OME10DEE. The present work recommended the application of OME10DEE as an alternative fuel on account of its better engine performance and emission characteristics than other fuel blends.