This study presents effect of injection timing on performance, combustion and emission characteristics of mahua biodiesel (Madhuca indica) and its blends with pure diesel on a 4 stroke tangentially vertical single cylinder (TV 1) direct injection diesel engine. Standard injection pressure (220 bar) is maintained throughout the experiment. Injection timings (22 degrees, 23 degrees and 24 degrees bTDC) were considered under steady state conditions at maximum load condition of the engine. At injection timing of 22 degrees bTDC, blend B25 (25% mahua biodiesel and 75% pure diesel, by vol) gave optimum performance, which is very close to pure diesel. Thus B25 fuel can be effectively used in a diesel engine as an alternative fuel without any modification in the engine. Diesel (25%) thus saved will greatly help the interests of railways in meeting the demand for fuel, as diesel trains are operated at maximum load condition.