Biofuel is a renewable, biodegradable and non-toxic fuel that is an alternative to fossil fuel. However, the long-term effect of biodiesel on internal combustion engine operation is not extensively studied. Thus, this study examined the effect of B5 biofuel (blend of 5% refined, bleached and deodourised palm olein oil (RBDPOo) and 95% automotive diesel oil (ADO) on engine performance and lube oil degradation of lightduty vehicles, i.e. Mercedes Benz (M), Mitsubishi Storm (MS) and Toyota Hilux (TH), up to 80 000 km mileage. ADO was also used for each vehicle brand for comparison. The engine power and torque were examined using chassis dynamometer. Analysis on wear metal content of lube oil was conducted to indicate engine deterioration level. Results showed insignificant deterioration on engine performance of M and MS vehicles using ADO and B5 but B5 vehicles showed lower torque reduction than ADO vehicles. For lube oil analysis, the properties and wear metal contents in B5 vehicles were within acceptable limit as suggested by the International Council on Combustion Engines (CIMAC). Results of this study concluded that the B5 biofuel can be potentially used for selected vehicle brands without engine modifications and normal service intervals can be applied for B5 vehicles.