This article discusses the experimental investigation of a new biofuel (lemongrass oil) feedstock as an alternative fuel. The subject has not drawn much attention among the fraternity of researchers. So far, an exploration for a new biofuel feedstock has resulted in demonstrating lemongrass oil (LGO) as an alternative energy source. Nickel-chromium-zirconium coating on piston, inlet, and exhaust valves is achieved using a plasma spray method. The coated engine has been tested with a constant level of neat diesel and varying proportions of 5, 10, and 15 percent of LGO–water emulsion; its properties have been analyzed per the ASTM standards. The considered test fuel was experimentally investigated in a single cylinder diesel engine at 1,500 rpm for its performance, combustion, and emission characteristics. Among the different mixtures, a fuel mixture of LGWM1 (LGO of 94 %, water of 5 %, span 80 of 0.5 %, and tween 80 of 0.5 %) profile had similar properties to diesel fuel, resulting in a higher thermal efficiency and a lower hydrocarbon, carbon monoxide emission. However, oxides of nitrogen and carbon dioxide emission were comparatively higher for the test fuel considered. The cylinder pressure and heat release rate curves show a slight increase at the full load condition as compared with diesel fuel. Against the background of continuous fossil fuel depletion, the fuel blend of LGWM1 (LGO of 94 %, water of 5 %, span 80 of 0.5 % and tween 80 of 0.5 %) acts as a promising alternative fuel for further research work.