Due to the oxygen contents in biodiesel, application of the fuel to compression ignition engines has significant advantages in terms of lowering PM formation in the combustion chamber. In recent days, considerable studies have been performed to extend the low temperature combustion regime in diesel engines by applying biodiesel fuel. In this work, low temperature combustion characteristics of biodiesel blends in dilution controlled regime were investigated at a fixed engine operating condition in a single cylinder diesel engine, and the comparisons of engine performances and emission characteristics between biodiesel and conventional diesel fuel were carried out. Results show that low temperature combustion can be achieved at O2 concentration of around 7~8% for both biodiesel and diesel fuels. Especially, by use of biodiesel, noticeable reduction (maximum 50%) of smoke was observed at low and middle loads compared to conventional diesel fuel. In addition, THC(total hydrocarbon) and CO(Carbon monoxide) emissions decreased by substantial amounts for biodiesel fuel. Results also indicate that even though about 10% loss of engine power as well as 14% increase of fuel consumption rate was observed due to lower LHV(lower heating value) of biodiesel, thermal efficiencies for biodiesel fuel were slightly elevated because of power recovery phenomenon.