In the present investigation, Waste Transformer oil-biodiesel, a type of waste oil has been considered as a potential alternative fuel to compression ignition engines. The main objective of this paper is to find a suitable fuel blend to improve efficiency and control emission characteristics by using the biodiesel along with the mixture of Nanoparticles alternate to the commercial diesel. In this experimental process the biodiesel is processed by using a method known as Trans-Esterification process. Then it is mixed with the Nanoparticle, the Biofuel used in this experiment is Waste Transformer Oil (WTO). It is then refined to form the Esterification Waste Transformer Oil (EWTO) so that it can be used as a biofuel in this experiment. Then the biofuel is blended with the diesel. In this experiment Ferric Oxide Nanoparticle (FON) is also used to improve the combustion rate of the fuel used. To enhance the properties of the blend nanoparticle is added to the blend, the nanoparticle used in this experiment is Ferric oxide (Fe<inf>2</inf>O<inf>3</inf>). © 2023 Elsevier B.V., All rights reserved.