Alkyl levulinate can be synthesized from renewable levulinic acid and has the potential to be used as a fuel blend component. A variety of compounds can be blended with biodiesel to improve or attain the desired fuel properties. In this study, the effects of blending n-butyl levulinate (BL) with palm methyl ester (PME) on fuel properties were evaluated. Blends of BL and PME (BL-PMEs) were prepared with 5%, 10% and 15% of BL. The addition of BL has improved the cloud and pour points by 7°C for 15BL-PME. As compared to ASTM D6751 and EN14214 specifications for biodiesel, BL-PMEs revealed properties within the specifications in terms of acid value, flash point, kinematic viscosity (40°C), and oxidative stability. The addition of BL up to 15% increased the acid value and decreased the flash point and kinematic viscosity. The oxidative stability increased slightly upon the addition of BL. The calorific value of BL-PMEs decreased with an increase in BL volume. Up to 10% BL, the calorific value is >35 MJ kg–1. Besides, BL is highly miscible with PME and no phase separation was observed. The present work suggested that BL has potential as a bio-based fuel blend compound for biodiesel.