A study of the role of diamond nanoparticles on 5CB liquid crystal composites with Fe3O4 nanoparticles is presented. Composite ferronematic systems based on the nematic liquid crystal 5CB doped with Fe3O4 magnetic nanoparticles and additionally bound to diamond nanoparticles (DNPs), of a volume concentration of 3.2 mg/mL, 1.6 mg/mL and 0.32 mg/mL, were investigated using both magneto-optical effect and surface acoustic waves (SAWs) to study the role of diamond nanoparticles on the structural properties of ferronematic liquid crystals. The responses of light transmission and SAW attenuation to an external magnetic field were investigated experimentally under a linearly increasing and decreasing magnetic field, respectively. Investigations of the phase transition temperature shift of individual composites were also performed. The experimental results highlighted a decrease in the threshold field in the ferronematic LC composites compared to the pure 5CB as well as its further decrease after mixing Fe3O4 with diamond powder. Concerning the transition temperature, its increase with an increase in the volume fraction of both kinds of nanoparticles was registered. The role of diamond nanoparticles in the structural changes and the large residual light transition and/or attenuation (memory effect) were also observed. The presented results confirmed the potential of diamond nanoparticles in nematic composites to modify their properties which could lead to final applications.