This document describes a study that used the Taguchi method to optimize the parameters of a single cylinder diesel engine running on blends of jatropha biodiesel and diesel. The parameters investigated were blend ratio, compression ratio, and engine load. Nine experiments were conducted based on an L9 orthogonal array with the parameters each at three levels. The mechanical efficiency was measured for each experiment. Response curve analysis showed that engine load had the greatest influence on mechanical efficiency, followed by compression ratio, with blend ratio having the least influence. The analysis predicted that a blend ratio of 50%, compression ratio of 16, and engine load of 10kg would provide the optimum setting for highest mechanical efficiency. A confirmation experiment was conducted to validate this prediction.