Abstract: The rapid increasing the industrialization, motorization, in the world has remarkably raised the demand of the petroleum products. The reservations of such a petroleum based fuels are limited in the world. Furthermore, they are exhaustible and cost is rapidly increasing day to day. For those countries having not ability of petroleum recourses, are importing the petroleum fuels. So, it is quit necessary to focus on an alternative fuels which can be derived from the material available in the country. This paper reviews the combustion parameter and exhaust emission characterizes of different bio-fuels such as plastic oil, cocking oil, rubber seed oil, palm bio-diesel, ethanol etc. the paper also reviews the experimental works carried out in various countries in this field and scope, challenges being faced in this area of research are clearly described.