The sortie was flown at Chandigarh on Monday morning.
The project is a combined effort of IAF, the Defence Research and Development Organisation (DRDO), the Directorate General Aeronautical Quality Assurance (DGAQA) and CSIR-Indian Institute of Petroleum.
"The IAF carried out extensive engine tests on the ground. This is now followed by flight trials using 10 per cent bio-jet blended ATF. This fuel is made from Jatropha oil sourced from Chattisgarh Biodiesel Development Authority (CBDA) and then processed at CSIR-IIP, Dehradun," the IAF said in a statement.