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Fossil fuels are depleting at a significantly higher rate, global warming reaching its new high and entire ecosystem suffering from air pollution. Biodiesel has emerged as potential substitute of diesel fuel that can be operated in a conventional diesel engine without any sort of major modification and provides comparable performance and lower emissions. One of the cumbersome tasks is to find the optimum blend of diesel-biodiesel and engine operating parameters. In this regard, many optimization and simulation methods have been used to optimize the biodiesel percentage in blend and engine operating parameters, which gives maximum power output and minimum emissions. There are several optimization techniques such as Genetic algorithm, Ant colony optimization, Grey relational analysis, Response surface methodology, Taguchi, artificial neural network, VIKOR and TOPSIS, which have been employed to optimize the working of a diesel engine run on biodiesel blends. In this research paper, the various optimization methods that have been used in a diesel engine for predicting & optimizing the several output parameters of the input model and ranking them accordingly are discussed. [ABSTRACT FROM AUTHOR]