This study aims at evaluation of the effect of injection timing on the combustion, performance and emissions of a small power diesel engine, commonly used for agriculture purpose, running on pure bio-diesel, prepared from Karanj (Pongamia pinnata) vegetable oil. The effect of varying injection timing was evaluated in terms of thermal efficiency, specific fuel consumption, power and mean effective pressure, exhaust temperature, cylinder pressure, rate of pressure rise and the heat release rate. Furthermore, the effects on emissions of unburnt hydrocarbons, oxides of nitrogen, carbon monoxide and carbon dioxide and smoke were also studied. It was found that retarding the injection timing by 38 enhances the thermal efficiency by about 8.2% with reduction in emission of oxides of nitrogen.