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Biofuels are bio-origin renewable fuels which are capable of replacing mineral-based non-renewable fossil fuels. The use of biofuels which have oxygen molecules in its structure makes major variation in exhaust emissions in Compression Ignition Engines. Research works in the field of biofuels as alternative fuels for Internal Combustion Engines show a reduction in Unburned Hydrocarbons (HC), Carbon monoxide (CO), smoke and Particulate Matter (PM). However the emission level of Oxides of Nitrogen (NOx) increased in certain cases. The explanation for both reduction and increase in the emissions shows that the presence of oxygen molecules in the fuel is critical. The present work forms on the investigation of the performance and the exhaust emissions from a diesel engine with respect to the oxygen content in the alternative diesel fuels.