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Biodiesel is a renewable, easily biodegradable, eco-friendly and sustainable alternative energy source. In this investigation, crude oil was extracted from Spirulina maxima microalgae through biochemical conversion method with the help of soxhlet apparatus. Biodiesel production process parameters were optimized through base transesterification. Maximum biodiesel yield achieved was 87.75 % at optimal reaction condition after transesterification, when methanol to oil ratio was 6:1, catalyst loading was 1 % KOH (wt.%), temperature was 65 °C, and stirring speed was 600 rpm for a reaction time of 70 minutes. All the physicochemical properties of the produced biodiesel were determined and compared with the ASTM D6751 specification. Finally, performance and emission of an unmodified diesel engine was evaluated with 20 % and 40 % (v/v) biodiesel blends and compared the results with ordinary …