Background and Objective: Use of biodiesel instead of fossil fuel has received extensive attention. This fuel is produced from residuals of local restaurants and natural resources. In recent years, biodiesel production has received extensive attention worldwide due to increase of global populations and demand for fuel to supply energy and, on the other hand, because of increase of environmental pollution and global warming, rise of world oil prices and limited resources of fossil fuels. Method: In this study, biodiesel is produced from extracted palm oil in the presence of alkaline catalyst like potassium methoxide by trans-esterification process. The produced biodiesel was mixed with the commercial fossil fuels existing in Iran to produce fuels with ratios of 10, 50 and 100 of biodiesel. The properties of the produced fuels such as pour point, cloud point, flash point, viscosity and density were studied according to the ASTM D 6751 and ASTM D7467 standards. Findings: According to the results, the values for density, viscosity, cinematic, cloud point, pour point and flash point for biodiesel were 176 C, 15 C, 13 C, 4. 7 mm2/s and 879 kg/m2, respectively, showing that density, viscosity and flash point fall within the standard limits. However, the values obtained for cloud point and pour point revealed that the biodiesel fuel cannot be used in cold regions. Discussion and Conclusion: According to the results, the best ratio of adding the biodiesel produced from palm oil to diesel for reducing the fossil fuel consumption and air pollution was 10% biodisel.