The paper presents the experimental test results reflecting the comparative changes in the performance efficiency and emissions of the exhaust of a naturally aspirated, four-stroke, single-cylinder, air-cooled diesel engine due to its transition from neat rapeseed oil biodiesel to fuel blends prepared by mixing in various proportion (by volume) rapeseed methyl ester (B) and butanol (Bu). The lubricity properties of biodiesel-n-butanol fuel blends were studied using HFRR method. In contrast to previous works, the undertaken investigation is performed with a totally renewable, binary liquid biofuel blends. The purpose of the research is to reduce simultaneously the production of NOx emissions and the exhaust smoke with respect to neat biodiesel due to potentially improved homogeneity of combustible mixture and particulate matter emissions benefits suggested by the higher oxygen content (21.62wt%) and the relatively lower carbon-to-hydrogen ratio (4.8) of the normal n-butanol. The tests revealed that the brake specific fuel consumption for the binary biodiesel-n-butanol fuel blends is always higher than that neat biodiesel produces under the same loading conditions. Maximum nitrogen oxide (NOx) emissions were obtained with the engine running on neat biodiesel (2290 ppm). At full (100%) load conditions, the lowest NOx emission was obtained with the engine running on a biofuel BBu20 blend. The lowest level of carbon monoxide emissions (CO) was observed, when engine running with the most butanol-oxygenated biofuel blend BBu20.The highest smoke opacity of the exhaust was obtained when the engine was fuelled with neat biodiesel and at full load.