The ceramic tile industry, with significant energy and material demands in its manufacturing processes, has employed technological innovations in energy efficiency, advanced equipment and tile thickness reduction to address these challenges. This study aimed to assess the impact of Ag2O, CuFe2O4, Fe3O4, and SiO2 nanoparticles (0%, 1%, and 5% by weight) on the mechanical strength, water absorption, and apparent thermal conductivity of ceramic tiles, as well as their capacity to reduce energy and raw material consumption. This reduction translates into a decrease in environmental impacts, which have been evaluated through life cycle assessment (LCA) methodology applied to the manufacturing processes. Nanoparticles (Ag2O, CuFe2O4, Fe3O4, and SiO2) were initially screened on TF clay (0%, 1%, 5% w/w), and the most effective were applied to CR1 and CR2 clays (0%, 1%, 5% w/w). Findings indicated a 32% increase in temperature gradient and a 16% improvement in flexural strength with the addition of Fe3O4 nanoparticle at 1% (w/w) in TF clay. Furthermore, there was a potential 48% reduction in energy consumption, and up to 16% decrease in tile weight or thickness without affecting the flexural strength property of the test tiles. LCA results demonstrated that the addition of Fe3O4 nanoparticle has potential reductions of up to 20% in environmental impacts. This study suggests that nanoparticle addition offers a viable alternative for reducing energy and material consumption in the ceramic tile industry. Future research should focus on assessing the economic impact of transitioning to a sustainable business model in the ceramic tile industry with nanoparticles addition.