We studied the impact of blending pentanol, a next generation biofuel, with cashew nut shell biodiesel on its performance and emissions characteristics in a constant speed compression ignition engine. Our main objective was to reduce CO, HC, NOX and smoke emission when fueled with neat cashew nut shell biodiesel and the pentanol blends. Cashew nut shell oil is a byproduct from cashew nut industry. Since it is nonedible, it can be used as a promising alternative. Conventional transesterification process was used to convert the cashew nut shell oil into cashew nut shell biodiesel. Pentanol with 98.4% purity was used as an oxygenated additive. The experiment involved three test fuels: neat cashew nut shell biodiesel (C100), Pentanol blended with cashew nut shell biodiesel by 10% volume (C90P10) and Pentanol blended with cashew nut shell biodiesel by 20% volume (C80P20). The feasibility of using neat biofuel (without adding diesel) was also investigated. Experimental work concluded that the test fuels used in this study does not require any modification in engines. In addition, the combustion of fuels was smooth and there was no physical and visible damage in the engine components when fueled with cashew nut shell biodiesel and the pentanol blends. By adding 10% and 20% of pentanol to cashew nut shell biodiesel, significant reduction in CO, HC, NOX and smoke emission was observed. In addition, brake thermal efficiency increased marginally with slight reduction in brake specific fuel consumption.