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This study investigated the effects of using ferric oxide nanoparticles (FO) and C2–C4 alcohols with diesel/biodiesel blend in a diesel engine. Optimum operating conditions were explored, and an engine speed of 1750 rpm was optimal. The concentration of FO was estimated to be 760 ppm, considering the best conditions for carbon nanotube (CNT) production. Ethanol was immiscible in diesel fuel; however, any biodiesel percentage in the blend made it miscible. The used engine was too small to run with a blend containing more than 3 % ethanol. Propanol and butanol were blended at the same ethanol concentration for comparative purposes. A blend with 30 % biodiesel (B30) was found to be the best diesel/biodiesel blend. This was detected by the best coefficient of variation (COV) with reasonable performance and emissions. Ferric oxide nanoparticles reduced COV and improved engine performance. The COV increased for tested alcohols. However, blending B30 with alcohols, especially butanol, improved thermal efficiency. FO and alcohol increased NOx emissions and decreased both CO and smoke opacity. They increased the peak pressure and the heat release rate while reducing the combustion duration. Nonetheless, no CNT traces were detected in the present study under any conditions.