The present experimental study aims at exploring the effect of Jatropha biodiesel and diesel blends on a single cylinder four stroke diesel engine. Jatropha biodiesel has been obtained from Jatropha oil by Transesterification process. In this experimentation, the effects of parameters` i.e. injection pressure, blend ratio, inlet water-flow rate and load are taken as adaptable for optimization. The Taguchi method of optimization has been used with four parameters and three levels of experiments. In the end, Taguchi experiment identifies that at JB50, injection pressure 150 bar, engine water flow 400 lph and engine load 11 kg is the optimum parameter setting for higher engine mechanical efficiency. This experiment was conducted using optimal combination of parameters has indicated that peak pressure decreased by about 1.66% and 3.06%, maximum fuel line pressure was reduced by 5.09% and 8.04% and the net heat release was lowered by 10.70% and 21.41% for JB50 and JB100 respectively.