Biodiesel is a non-petroleum based fuel derived from vegetable oils or animal fats. Biodiesel has attracted huge attraction worldwide due to its renewability, biodegradability, and its better gas emission. The process of biodiesel production which converts vegetable oils and fats to fatty acid methyl ester using a short chain alcohol and catalyst called transesterification. A maximum of 92% biodiesel conversion obtained by using 1:4 oil/methanol ratio and catalyzed by KOH. Brake horse power and fuel consumption were found that increased with increased amount of biodiesel percentage in fuel blend. Engine power output was found to be decreased when biodiesel blend percentage increased. The objectives of this study are to investigate the optimize production of biodiesel from waste deep frying oil by using different amount of catalyst and different amount of oil-to-methanol ratio and to compare the engine performance of biodiesel and ordinary diesel when tested with diesel engine.