Biodiesel attracts most of the researchers and automotive industries in recent years as an alternative fuel for diesel engines, because of its better lubricity property, higher cetane number, and less greenhouse gas emissions. The use of bio diesel leads to reduction in hydro carbons, carbon monoxide, and particulate matter, but increase in NOx emissions. Increase in biodiesel blends in standard diesel leads to increase in NOx emission. In this study, an attempt is made to reduce the NOx emissions of a diesel engine fueled with pure soy methyl ester (B100) with low pressure steam injection. Experiments were carried out and studied for both standard diesel and pure biodiesel of soy methyl ester with steam injection ratio of 5, 10, and 15% on mass ratio basis of air in the inlet manifold. The present study has shown that around 30% reduction in NOx can be achieved for the steam injection rate of 10% and considerable reduction for all other steam injection rates when compared to standard diesel and B100. It is also observed that steam injection having significant impact on reduction of other emissions such as HC, CO, and CO2. The study also noted marginal improvement in the engine brake power, brake thermal efficiency and reduction in specific fuel consumption at part loads and minor increase during peak load operation for the low pressure steam injection on B100.