The use of biodiesel fuels in compression ignition engines leads to decrease CO, PM, HC and smoke opacity. However, NOx emissions increase importantly. Various methods to reduce NOx are used namely the EGR, the water injection method and the steam injection method. In this study, the steam injection method has been used instead of the other methods because of its benefits. This study examines the effects of steam injection on combustion products of diesel and biodiesel fuels by considering chemical equilibrium in order to determine the equilibrium combustion products involving 10 combustion products. A developed simulation code determing the equilibrium mole fractions and thermodynamic properties of combustion products is used for diesel and biodiesel fuels. It can be used for any fuel consisting of carbon, hydrogen or any oxygenated fuel. The results show that the mole fraction of CO2 and CO decrease with the steam injection ratios. NO mole fractions decrease with steam injection for lean mixtures but they increase slightly in the case of rich mixtures. The specific heat of combustion products increase with the steam injection ratios. Thus, the engine performance can be improved using the method. The model has been validated by comparing model results with the ones of NASA CEA software and GASEQ software using the methane as fuel. The relative errors of equilibrium mole fractions and thermodynamic properties of combustion products are less than 0.98 %.