In this paper, we explore the efficacy of (1) reducing the iodine value of soy-derived biodiesel fuels through increasing the methyl oleate (methyl ester of oleic acid) content and (2) addition of cetane improvers, as strategies to combat the biodiesel NO x effect: the increase in NO x emissions observed in most studies of biodiesel and biodiesel blends. This is accomplished by spiking a conventional soy-derived biodiesel fuel with methyl oleate or with cetane improver. The impact on bulk modulus of compressibility, fuel injection timing, cetane number, combustion, and emissions were examined. The conventional B20 blend produced a NO x increase of 3–5% relative to petroleum diesel, depending on injection timing. However, by using a B20 blend where the biodiesel portion contained 76% methyl oleate, the biodiesel NO x effect was eliminated and a NO x neutral blend was produced. The bulk modulus of petroleum diesel was measured to be 2% lower than B20, yielding a shift in fuel injection timing of 0.1–0.3 crank angle. The bulk modulus of the high methyl oleate B20 blend was measured to be 0.5% lower than B20, not enough to have a measurable impact on fuel injection timing. Increasing the methyl oleate portion of the biodiesel to 76% also had the effect of increasing the cetane number from 48.2 for conventional B20 to 50.4, but this effect is small compared to the increase to 53.5 achieved by adding 1000 ppm of 2-ethylhexyl nitrate (EHN) to B20. For the particular engine tested, NO x emissions were found to be insensitive to ignition delay, maximum cylinder temperature, and maximum rate of heat release. The dominant effect on NO x emissions was the timing of the combustion process, initiated by the start of injection, and propagated through the timing of maximum heat release rate and maximum temperature.