There are stringent emission norms on automotive engine exhaust emissions, especially on nitrogen oxides (NOx) and smoke emissions. Simultaneously, these emissions are trading off, which presents a challenge in meeting emission standards. In this research, an experiment was carried out to explore the features of combustion, efficiency and emission of a single-cylinder, DI diesel engine operated with 20% biodiesel blend and different exhaust gas recirculation (EGR) rates (10%, 20% and 30%) under different loadings. Cylinder pressure and heat release rate (HRR) were measured and calculated. From the experimental outcomes, 20% Pongamia biodiesel blend and 20% EGR rate reduced the brake thermal efficiency, increased specific fuel consumption and decreased the NOx emissions. However, there is a slight increase in other emissions including CO, HC emissions and smoke opacity. The cylinder pressure and HRR were observed to have decreased with an increase in EGR levels for the biodiesel blend.