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At the present study emission performance of a diesel engine (Lister Petter) was evaluated at different compression ratios and engine loads with soybean methyl ester and its 25%, 50%, 75% blends with diesel fuel at constant speed 1500 rpm. Exhaust emissions included CO, CO2, HC and NOx. The compression ratio and engine load varied from 14 to 20 with an interval 1 and 25 to 100% with an interval 25%, respectively. The experimental results indicated that for all combination of compression ratios and engine loads, it could be concluded that B75 and B100 could be safely blended without significantly affecting the emissions (CO, CO2, HC and NOx). Concerning the costs, B75 is more economical than B100. Thus B75 could be a cleaner, more appropriate alternative fuel than pure diesel.