The present study reports the results of Alumina and CNT (carbon nanotube) nanoparticles blended biodiesel fuel on the performance, emission, and combustion characteristics of a diesel engine. The biodiesel is produced from the raw jatropha oil by standard transesterification process, and subsequently, the nanoparticles such as Alumina, CNT, and Alumina-CNT are blended with the biodiesel fuel in the mass fractions of 25 and 50 ppm with the aid of an ultrasonicator. The characterization studies of the nanoparticles such as TEM and XRD are carried out to analyze their morphology. The whole investigation is carried out in a constant speed diesel engine in four phases using neat biodiesel fuel, Alumina blended biodiesel, CNT blended biodiesel, and Alumina-CNT blended biodiesel fuels. The results revealed a considerable enhancement in the brake thermal efficiency and marginal reduction in the harmful emissions for the nanoparticles blended biodiesel fuels compared to those of neat biodiesel fuel. Furthermore, the hot-plate evaporation test confirmed a shorten ignition delay effect, and improved heat transfer rate associated with the nanoparticles blended biodiesel fuels, owing to their enhanced surface area/volume ratio, and heat conduction properties.