This study investigates the use of ferric chloride (FeCl 3 ) as a fuel borne catalyst (FBC) for waste cooking palm oil based biodiesel. The metal based additive was added to biodiesel at a dosage of 20μmol/L. Experiments were conducted to study the effect of ferric chloride added to biodiesel on performance, emission and combustion characteristics of a direct injection diesel engine operated at a constant speed of 1500rpm at different operating conditions. The results revealed that the FBC added biodiesel resulted in a decreased brake specific fuel consumption (BSFC) of 8.6% while the brake thermal efficiency increased by 6.3%. FBC added biodiesel showed lower nitric oxide (NO) emission and slightly higher carbon dioxide (CO 2 ) emission as compared to diesel. Carbon monoxide (CO), total hydrocarbon (THC) and smoke emission of FBC added biodiesel decreased by 52.6%, 26.6% and 6.9% respectively compared to biodiesel without FBC at an optimum operating condition of 280bar injection pressure and 25.5 o bTDC injection timing. Higher cylinder gas pressure, heat release rate and shorter ignition delay period were observed with FBC added biodiesel at these conditions.