If the agricultural products market is limited and much of agricultural land is not utilized as is the case in many countries in the world at present, then agriculture should be directed to the production of new alternative products. The land can be used to produce non-food products including biodiesels for the domestic energy market to diminish imports. Much research has been done on biodiesels over the last 20 yr after the oil crisis in 1973. At present, concern about environmental regulations has been the major reason to look for alternative fuel. A significant level in terms of physico-chemical properties of biodiesel has been obtained but there is a lack of full or partial replacement of fossil fuel that needs to be discussed. This paper presents the experimental results carried out to evaluate the effect of anticorrosion additive in biodiesel (from palm oil) on diesel engines, performance, emissions and wear characteristics. This biodiesel is defined as the methyl ester of palm oil also known as palm oil diesel. The results of this investigation will be used to find compatible lubricant for biodiesel engine.