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This paper presents experimental test results of a diesel engine using additive added bio Diesel oil obtained from palm oil. The test results obtained are brake power, specific fuel consumption (SFC) and exhaust emissions. In addition, anti-wear characteristics of fuel's contaminated lubricants were observed using a tribometer test. A computer control dynamometer-engine test bed was used to measure engine brake power and SFC at half throttle condition with speed range of 1000 rpm to 4000 rpm. The emission test was done with dynamometer fixed load of 50 Nm and constant engine speed of 2250 rpm. A total of three fuels or 100% diesel fuel (B0); 20% palm oil diesel (POD) and 80% B0 (B20); and B20 with X% additive (B20X) were selected for this investigation. The B20X is the additive added bio Diesel oil where X is the percentage (in this investigation X=1% of B20) of additive in B20 fuel.