In contemporary industrialization, the prevalent occurrence of energy crises and emissions poses significant challenges, necessitating the exploration of alternative fuel sources and the implementation of measures to minimize hazardous emissions. These efforts are crucial for attaining the sustainable development goals set forth by the United Nations. The current study is to empirically examine the effects of a newly developed biofuel on the operational characteristics of a CRDI engine this investigation will involve the utilization of different mixtures of pedicel oil at various brake mean effective pressures. The generation of oil from bio-waste collected from industry in Guntur Mirchi-yard, pedicel of dried hot paprika or chili using Soxhlet extraction method. After the synthesis, the characterization of Pedicel bio-oil (PBO) is done using gas chromatography-mass spectrometry (GCMS) and results are estimated using standard ASTM methods. After characterization, bio-oil is converted to pedicel bio-diesel (PBD) using a transesterification process. When the engine was operated using a combination of 80% diesel and 20% pedicel oil (referred to as the D80B20 blend), it resulted in a notable improvement in brake thermal efficiency by 1.6%. Additionally, this blend led to a reduction in emissions of oxides of nitrogen by 6.7%. However, it is worth noting that smoke levels marginally increased under full-load conditions with a 500 bar fuel injection pressure (FIP). The D80B20 fuel mixture exhibited a 7% reduction in hydrocarbon emissions compared to pure diesel fuel when the engine was operating at maximum load with an ignition timing of 23 ̊ before the top dead center. This numerical analysis clearly shows that D80B20 at IT 23 ̊ bTDC and FIP 500 bar give better results. Although it doesn't need any engine adaptations, the biodiesel made from leftover chili pedicel is a viable diesel replacement fuel.