The automotive sector is one of the top energy consumers globally compared with any other sector where oil plays the main role. According to http://statista.com (an online platform that displays the stats on oil consumption and reserves), in 2016, the demand for crude oil was about 85.3 million barrels per day worldwide. In 2019, the demand almost reached 100 barrels per day, and then it was reduced to 91 million per day during the 2020 global COVID‐19 crisis. However, it was predicted that the global crude oil requirements will exceed 100 million barrels per day by 2023 and will continue to raise. Also, geographically, not all countries worldwide have the oil reservoirs or the technology to extract oil from the reservoirs. Although the oil demand worldwide is increasing every year, researchers have estimated that there are only 47 years of oil left on the planet earth if the current oil consumption will raise this way. Researchers are looking for finding alternative fuels, such as electrochemical energy (electric vehicles), biodiesel, electricity, ethanol, hydrogen, natural gas, propane, emerging fuels, or the use of such fuels in the existing engines to minimize the use of nonrenewable energy resources. However, researchers are also looking more at fuels based on hybrid nanoparticles added to emulsified fuels. Due to the limitations of utilizing electrochemical energy or biofuels include high charging time, limited millage, harmful exhaust emissions, complicated production process, engine efficiency, the cost of fuel, and the advantages over hybrid nanoparticles added emulsified fuels than biofuels. Hence, after going through numerous researches, in this present experimentation, “hybrid nanoparticles (MgO and Al2O3) added water‐in‐diesel emulsion” are formulated to enhance the quality of emission and improve the performance of the compression ignition engine. The best combination of diesel, MgO, and Al2O3, a water‐in‐diesel (W/D) emulsion blend, is proposed. The results were further validated using deep neural network‐based spotted hyena optimization (DNN‐SHO) prediction and compared with traditional machine learning approaches artificial neural network (ANN), convolution neural network (CNN), regression‐based network (RBN), recurrent neural network (RNN), and DNN. As a result, the best proportions of the proposed nanoparticles added into the W/D bend are identified to be 10% W/D, 50 ppm of MgO, and 50 ppm of Al2O in terms of engine performance and emission characteristics brake thermal efficiency 30.7%, brake‐specific fuel consumption 0.29 kg/kW‐h, CO 0.027 vol%, NOx 855 ppm vol, and HC 12 ppm vol. Besides this, the DNN‐SHO‐based validated outcomes are in good agreement with the experimental values and outperformed other traditional approaches ANN, CNN, RBN, RNN, and DNN used in this study.