The present study investigates the performance and emission characteristics of single cylinder VCR diesel engine fuelled with nano additive blended diesel emulsion and the results are compared with neat diesel. The nano additives used for present investigation is AL 2 O 3 and CeO 2 nanoparticles. The base fuels taken for the experimental work is diesel, water and surfactants (span 80 and Tween 80). The test fuels were prepared by using an ultrasonicator with emulsion technique. The nano additives added for the test fuel is in the ratio of 50 ppm (25ppm AL 2 O and 25ppm CeO 2 ) and 100 ppm (50ppm AL 2 O 3 and 50 ppm CeO 2 ). The entire investigation is conducted under constant speed and different load conditions. A substantial improvement in performance and a reduction in the exhaust emissions for the nano additive blended fuels compared to neat diesel were observed from the experimental results. For D88S2W10CA100 blend, optimum performance (BTH and BSFC) and emission (CO, NO x , UBHC and CO 2 ) improvement were achieved as compared to other test fuels.