Problems of atomization, spray, and lower output power are due to the biodiesel’s higher viscosity. All of these aim to encourage fuel magnetism and nanoparticles addition to reduce fuel consumption. Waste cooking oil was converted to methyl ester by transesterification. To make methyl ester blend, diesel and biodiesel were mixed at volume ratio of 20%. TiO2 nanoparticles were added to biodiesel blend B20 at doses of 25 and 50 mg/L. TEM and XRD were used to characterize the nanomaterials. A magnetic coil was placed before the fuel injector to apply a magnetic field on the line of fuel. South pole of the magnetic field is located near to the fuel line, whereas the north pole is located further away. To examine the impact of these nanomaterials with fuel magnetism on engine performance and emissions using WCO biodiesel mixture, an experimental test rig was built connected to diesel engine. During testing, diesel engine operates at 1500 rpm with load variation. The average increases in BTE were 1, 1.5, 3.5, 5.5, and 6.5% but the decreases in BSFC were 1.2, 2, 4, 5, and 6% for B20 + magnet, B20 + 25 TiO2, B20 + 25 TiO2 + magnet, B20 + 50 TiO2, and B20 + 50 TiO2 + magnet, respectively, at engine load range. The average drops in CO, NOx, and HC concentrations were 16, 22, and 33%, respectively, at load range for B20 + 50 TiO2 + magnet. To improve engine performance and reduce emissions, biodiesel blend B20 from waste cooking oil with nanoTiO2 concentration of 50 ppm under magnetic field effect was recommended as a substitute fuel in diesel engine.