In this study, effects of diesel-like fuel (DLF) on engine performance and exhaust emission are investigated experimentally. The DLF is produced from waste engine lubrication oil purified from dust, heavy carbon soot, metal particles, gum-type materials and other impurities. A fuel production system mainly consisting of a waste oil storage tank, filters, a reactor, oil pump, a product storage tank, thermostats and control panel is designed and manufactured. The DLF is produced by using the system and applying pyrolitic distillation method. Characteristics, performance and exhaust emissions tests of the produced DLF are carried out at the end of the production. The characteristic tests such as density, viscosity, flash point, heating value, sulfur content and distillation of the DLF sample are performed utilizing test equipments presented in motor laboratory of Mechanical Engineering Department, University of Gaziantep, Turkey. Performance and exhaust emission tests for the DLF are performed using diesel test engine. It is observed from the test results that about 60 cc out of each 100 cc of the waste oil are converted into the DLF. Characteristics and distillation temperatures of the DLF are close to those values of a typical diesel fuel sample. It is observed that the produced DLF can be used in diesel engines without any problem in terms of engine performance. The DLF increases torque, brake mean effective pressure, brake thermal efficiency and decreases brake specific fuel consumption of the engine for full power of operation. (C) 2010 Elsevier B.V. All rights reserved.