The World is confronting with twin crisis for energy demand they are rapid depletion of fossil fuels and increased emissions with the use of fossil fuels. Researchers all over the globe are finding an alternative for this problem. One best alterative have been identified is the use of biodiesels with the existing engine operating conditions. In this study Pongamia biodiesel is considered due to its availability in abundance at the southern parts of India. The properties of Pongamia biodiesel are in line with the diesel to use in the existing engine. The impact of engine operating conditions wise Compression ratio, Injection Pressure and Injection Timing are varied for the optimized blend of B20. The results are compared with standard engine configuration with base line fuel. The compression ratio 16, Injection Pressure 210 bar and Injection timing 210 bTDC have produced better results when compared with standard results.