Biodiesel has been reported as renewable, green fuel with better engine-emission properties and microalgae (like C. pyrenoidosa) derived biodiesel is a step towards the sustainable supply of liquid fuel to drive the world economies. In the present investigation, Biowaste [Dairy wastewater (DWW) and rice straw hydrolysate (RSH)] was used as natural feedstock for the growth of C. pyrenoidosa. The better yield was obtained by using DWW as media for the growth of microalgae. The biodiesel produced was composed of high molecular weight fatty acid methyl esters (FAME), thus confirming its purity. Physicochemical properties of the biodiesel produced were analyzed and compared with the petrodiesel and with standard analytical methods (ASTM-D6751 and EN 14214:2010). The brake thermal efficiency (BTE) of 42.23%, the calorific value of 41.865 MJ/kg and brake power (BP) 39.99 kW was obtained for the biodiesel produced and has been found to be higher but statistically non-significant in comparison to petrodiesel. However, statistically significant reduction in emission (40-50%) and reduction in CO2 (50-60%) was found in case of biodiesel as compared to petrodiesel. The data presented clearly demonstrates that the engine performance parameters and emission parameters of the biodiesel produced were better than the conventional petrodiesel. (C) 2019 Elsevier Ltd. All rights reserved.