The environmental sustainability of agricultural and industrial vehicles, as well as of the transportation sector, represents one of the most critical challenges to the sustainable development of a nation. In recent decades, compression-ignition engines have been widely used in on-road and off-road vehicles due to their better fuel economy, autonomy, compactness, and mechanical performance (spec. the high torque values). Due to the consistent environmental impact of fossil fuels, scientists are searching for alternative energy sources while preserving the beneficial features of diesel engines. The utilization of blends of diesel fuel, biodiesel, and bioethanol fuel (referred to as “ternary blends”) is among the most promising solutions for replacing fossil fuels in the near term, allowing, at the same time, us to continue using existing vehicles until new technologies are developed, consolidated and adapted to the agricultural and industrial sector. These ternary blends can lower exhaust emissions without creating major problems for existing fuel-feeding systems, typically designed for low-viscosity fossil fuels. One of the concerns in using liquid biofuels, specifically biodiesel, is the high chemical affinity with conventional and bio-based lubricants, so the main parameters of lubricants can vary significantly after a long operation of the engine. The comprehensive literature review presented in this article delves into the technical challenges, the main research pathways, and the potential solutions associated with the utilization of biofuels. Additionally, it investigates the emerging application of nanoparticles as additives in lubricants and biofuels, highlighting their valuable potential. This study also discusses the potential implementation of bio-ethanol in ternary blends, offering a promising avenue for reducing reliance on fossil fuels while maintaining engine efficiency.