Nowadays about 90% of the energy consumed in the world is provided from fossil sources. As fossil fuel reserve is limited, and the emission values are not suitable, new precautions and new surveys for future are compelled. Especially in reaching of global heating to the risky levels forces the humankind to use sustainable and renewable energy. Biodiesel is are newable and environmental-friendly fuel for dieselengine. This study aimed to determine the physical properties (namely, kinematic viscosity, density, flash point, cloud point, pour point, freezing point, copper strip corrosion) of biodiesel fuels derived from soybean oil, rape seed oil and palm oil. In addition, the engine performances with these biodiesel fuels were compared with the engine performance with normal diesel fuel. A four-stroke, 3-cylinder, 30 kW TUMOSAN (Turkish Motor Industry and Trade) diesel engine was used for experimentation. The kinematic viscosity, density, flash point, cloud point, pour point, freezing point, copper strip corrosion values of all biodiesel fuels stayed within the limit values described by DIN-TSE EN 14214. They can readily be used without any need for modifications of the engine. Eventhough specific fuel consumption for biodiesel fuels tended to be higher than that for normal diesel fuel, the exhaust smokiness values of biodiesel fuels were considerably lower than that for normal diesel fuel. On the other hand, there were no significant differences observed for torque, power and exhaust smokiness. Consequently, biodiesel can be a good alternative to fossil diesel fuel in oil-importer countries like Turkey.