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Environmental sustainability concerns have led to exploring alternative fuels like biodiesel in transportation. However, biodiesel engines emit pollutants like NOx, CO, and PM, posing health and environmental risks. This review explores the use of Aluminium Oxide (Al2O3), Ruthenium Oxide (RuO2), Titanium Oxide (TiO2), Cerium Oxide (CeO2), Graphene Oxide, Multi-walled Carbon Nanotubes (CNT) and other nanoparticles, in biodiesel engine. It focuses on their unique properties, characterization, emission control, environmental impact, and engine performance. The study emphasizes the significance of different biodiesel blends, compositions, and nanoparticle additions in determining engine performance and emissions. Results vary based on nanoparticle type, size, concentration, and blend composition. The review examines the impact of nanoparticles on various aspects of biodiesel blends, including density, viscosity, cetane number, calorific value, and flash points. It found that nanoparticle additives significantly influence Brake Thermal Efficiency and combustion efficiency. The study also found that nanoparticle-enhanced biodiesel blends have improved ignition properties, faster evaporation, higher oxygen content, and elevated cetane numbers, leading to cleaner combustion and more environmentally friendly engine operation. The research supports the beneficial effects of nanoparticles on biodiesel characteristics and emissions reduction. The review suggests that nanoparticles in biodiesel engines can improve fuel characteristics, engine performance, and emissions reduction but cautions against potential environmental and health risks. The findings suggest further research and optimization for sustainable and efficient engine performance in pursuing greener transportation fuels, highlighting the potential of nanoparticles in biodiesel blends.