This study examines various performance indicators, including emissions, engine efficiency, and fuel combustion, by reviewing relevant academic literature and empirical research. The research investigates whether a Variable Compression Ratio (VCR) engine can operate on biofuel, adjusting its compression ratios to accommodate a wide range of operating conditions. By comparing the results from a standard diesel engine with those from the VCR engine using biodiesel, the study highlights the benefits and drawbacks of using biodiesel as a fuel source. The findings illuminate the potential of using biodiesel in engines with adjustable compression ratios to create more environmentally friendly and fuel-efficient powertrains. These results support ongoing efforts to reduce dependence on non-renewable energy sources and lower greenhouse gas emissions in transportation. The study provides a comprehensive review of literature on biodiesel, an eco-friendly alternative to conventional fuel that has garnered significant attention. Despite ongoing interest, questions remain about the performance of VCR engines with biodiesel. The paper offers an extensive overview of the challenges associated with using biofuel in engines with Variable Compression Ratios, emphasizing the interaction between biofuel and these engines. The research findings offer a detailed assessment of how biodiesel impacts fuel consumption, power output, and torque in a VCR engine. Additionally, the study investigates the effects of biodiesel on emissions of nitrogen oxides (NOx), carbon monoxide (CO), particulate matter, and other combustion byproducts. Results indicate that increasing the biodiesel content in the fuel mixture improves overall thermal efficiency, despite a significant reduction in braking force.