ABSTRACT: The oil extract from groundnut seed (Arachis hypogaea) using two different extraction methods for biodiesel production was analyzed to ascertain the feasibility and suitability of the liquid biofuel and its blends for an alternative to the conventional petrol diesel. The oil was trans-esterified with ethanol using sodium hydroxide (NaOH) as catalyst. The yield of the oil and biodiesel for mechanical and chemical extraction processes were (4.94%, 16.54%) and (66.30%, 88.75% respectively. The blends (B2.5, B5, B10, B15, and B20) were prepared on the basis of measurable volume. The physicochemical properties of the oil from the different methods of extraction and the fuel properties of the biodiesel blends such as viscosity, density, flash point, fire point, cloud point, pour point, cetane number were characterized using the specific standard methods and FTIR spectroscopy based on ASTM standard. Most of the biodiesel samples gave conclusive results which are consistent with the ASTM standards. The biodiesel-diesel ratios (B2.5, B5, B10, B15) are devoid of carbon residue for compression ignition engine performance. The cold flow properties are relatively high for temperate region convenience but will give better engine efficiency in tropical areas with reduced greenhouse emissions. Biodiesel-blending ratios of B2.5-B15 are preferable having stretching vibrations at 1760cm-1 for carbonyl group which is attributed to mono-alkyl ester of fatty acid devoid of carbon deposits during combustion process in correlation with high flashpoint and cetane number. Chemical extraction technique of the vegetable oil for biodiesel production gave a compatible fuel properties compared to mechanical extraction technique.