Biodiesel is more expensive than conventional diesel fuel because of cost of raw material. to reduce cost of biodiesel there is a need to search for the alternative sources which are not useful and go as waste. this lead to search for excavation of biodiesel feed stocks from unconventional, non-edible oil and fats like, waste grease, waste cooking oil, disposed automobile tyres, etc. the present work explores one such alternative milk scum waste from diaries and reveals that biodiesel from milk scum oil is suitable alternative fuel for diesel. annual production of milk in india is 150 million tons per year. thousands of large dairies are engaged in handling this milk across the country. raw chilled milk of cows and buffalos are standardized into market milk and milk products such as butter, ghee, cream, peda, panner, cheese, yoghurt, ice cream and other products. large dairies are handling number of equipments for processing, handling, storage, packing and transportation of milk and milk products. enormous quantities of water are used for housekeeping, sterilizing and washing equipments, during this process residual butter and related fat which are washed and get collected in effluent treatment plant as a scum. scum is a less dense floating solid mass usually formed by a mixture fat, lipids, proteins, packing materials etc. a large dairy, which processes 5 lakh liters of milk per day, will produce approximately 200-350 kg of effluent scum per day, which makes it difficult to dispose. by doing so, it is economically wasteful and generates pollutants. further, scum causes direct as well as indirect operational difficulties for effluent treatment. to address the problem, present proposal is submitted to conduct experiments for the production of biodiesel from milk scum oil obtained from dairy and its characterization. moreover, produced biodiesel and standard diesel blend will be utilized in a diesel engine to analyzed performance of engine and emission characteristics.