The effect of spray penetration distance on fuel impingement on piston bowl of a 7.4 kW diesel engine for biodiesel-diesel blend (B20) was studied using modeling and CFD simulation. As the peak inline fuel pressure increased from 460 bar with base diesel to 480 bar with B20, the spray penetration distance (fuel jet) increases. It is observed from the study that the jet tip hits on piston bowl resulting to fuel impingement which is one of durability issues for use of biodiesel blend in the diesel engine. In addition to this, the simulation of effects of different injection pressures up to 2000 bar on spray penetration distance and wall impingement were also studied. The penetration distance increases with increase the in-line fuel pressure and it decreases with decrease nozzle hole diameter. The fuel impingement on piston bowl of the engine with high injection pressure (typically 1800 bar) can be avoided by decreasing the nozzle diameter from 0.19 mm to 0.1 mm. Increase in swirl ratio could also reduce fuel impingement problem.