The awareness on the use of biofuels is increasing day by day among the public throughout the world, because of their merits over petroleum fuels. Biogas is a clean, cheaper and eco-friendly fuel. It can be produced from any organic digestive material. In the present research work, biogas was produced by anaerobic digestion of de-oiled cakes obtained from an oil crushing unit. Further, the biogas was used as an alternative fuel in a direct injection (DI) diesel engine on dual fuel mode. Diesel was used as a pilot fuel while, biogas was inducted at different flow rates of 0.15kg/h, 0.3kg/h, 0.45kg/h and 0.6kg/h along with the inducted air through the intake manifold. The performance and the emission characteristics of the engine were studied. The dual fuel mode operation showed a higher BSEC than that of single fuel mode. Also, 30% diesel consumption was replaced by biogas in dual fuel mode. The dual fuel mode emission showed 16% and 21% increment in the CO and HC emissions. The NO and smoke emissions were found to be lower by about 35% and 41.3%. The results of the experiments were compared with the diesel operation and presented in this paper.