The current study involves the conversion of oil derived from Palm into biodiesel using a two-stage trans esterification process. The physiochemical and filterability characteristics of biodiesels are analyzed and experiments are carried out employing a single-cylinder four-stroke diesel engine to test several biodiesel blends as B0, B20, B30, and B40 for their filterability, performance, and emission characteristics. B20 had an FBT value of 1.36, and experimental outcomes were analyzed using response surface methodology optimization using Design expert software. The findings indicate that the emission characteristics and performance of the B20 blend closely resemble those of diesel fuel. At full load, the brake specific energy consumption is measured at 11.52 MJ/kW h, while the Brake thermal efficiency stands at 32.14% for the B20 blend. These values are comparable to diesel, with variations of 2.12% and 1.96% respectively. During the experiment, the emission parameters of HC, CO, and smoke were 6.12%, 17.67%, and 9.6% respectively, lower for B20 blend than diesel. Nevertheless, NO<inf>x</inf> of the biodiesel emission B20 blend is 2.03% greater than those of diesel, representing the lower than others. Furthermore, the optimization of the results of a CI engine achieved through the development of a CCD model that employs RSM. The research revealed that B20 is the most advantageous mix relative to other alternatives and functions effectively as a diesel substitute. © The Author(s) 2025.