Biodiesel from Pongamia oil is one of the promising non edible sources in India. But the main problem of using Pongamia biodiesel as fuel is its poor stability characteristics. Poor stability leads to gum formation which further leads to a storage problem of these fuels for a longer period of time. This paper investigates the methodology of improving the stability characteristics of Pongamia biodiesel by blending with diesel and use of the antioxidant Pyrogallol. The experimental investigation shows that blending with diesel and using of antioxidant Pyrogallol improves the stability characteristics of Pongamia biodiesel significantly. Results of the study show that the optimum amount of antioxidant (PY) for pure PB20 is 300 ppm to maintain the oxidation stability specification and blending of diesel with Pongamia shows that PB10 requires no additive to maintain its stability characteristics.