With incessant increases in fuel prices worldwide and concerns for environmental pollution, the need for alternative sources of energy is becoming urgent. In this study, the potential of grape seed oil for biodiesel as an alternative fuel was evaluated. Refined grape seed oil was bought in liquid form and then subjected to an alkali-catalyzed transesterification process for biodiesel production. The physicochemical properties of the resulting biodiesel—namely, viscosity, cetane number, and heating value—were investigated. The biodiesel was blended with a conventional diesel in various proportions and combusted in a four-cylinder, four-stroke compression ignition (diesel) engine under two loading conditions. Experimental results revealed that the blend ratio of B70 (70% GS biodiesel and 30% conventional diesel) gave the best overall engine performance in terms of maximum power, minimum emissions, and fuel consumption. Furthermore, a novel neural network technique called extreme learning machine was adopted to investigate the optimal blend ratio using the dataset obtained from the experimental results. The results also indicate that the best choice of biodiesel blend ratio is approximately B73.67 (73.67% GS biodiesel and 26.33% conventional diesel). The study shows that grape seed oil could serve as a reliable source of production of quality biodiesel fuels, which could be used as an alternative to conventional diesel fuels.