The novel garcinia gummi-gutta seed is used for extraction of biodiesel using transesterification process. The impact of diethyl ether (DEE) in biodiesel on the fuel properties was examined. The performance and emission characteristics of six fuels (B20DEE10, B30DEE10, B40DEE10, B100, B100DEE10 and D100) are tested on diesel engine from no-load to full load conditions. The addition of 10% diethyl ether to 20% biodiesel (B20) closely resemble the fuel properties of diesel fuel (D100) compared to other tested biodiesel blends. The performance parameters (brake specific fuel consumption (BSFC) and brake thermal efficiency (BTE)) and emission characteristics (carbon monoxide (CO), nitrous oxide (NOx) and hydrocarbon (HC)) are examined for six fuels at different engine load conditions. BSFC of all biodiesel showed comparatively higher value to that of diesel fuel at all engine loading conditions. BTE of diesel fuel showed higher values compared to other biofuels. Biodiesel blends resulted in reduced carbon monoxide and hydrocarbon emissions compared to diesel fuel. NOx emissions are higher for biodiesel and its blends compared to diesel fuel at all loads. Addition of 10% diethyl ether to biodiesel (B100) fuel resulted in better performance and emission characteristics compared to B100 fuel tested at full load engine conditions.