Importance of this investigation is 100% biodiesel make use as fuel for low heat rejection (LHR) diesel engine. Due to this reason bio-fuels namely, eucalyptus oil and paradise oil were selected and used as dual fuel. Conventional engine hardware parts were coated with lanthana-doped yttriastabilized zirconia (the doping of YSZ coatings with small amount of La2O3) with a thickness of 300 µm, so as to analyze the operating parameters of paradise oil–eucalyptus oil blends. Tests run were replicated on the conventional diesel engine and outcomes were compared. Test outcomes confirmed that the major intention of this research was attained as engine operating parameters like, brake thermal efficiency, exhaust gas temperature were increase with decrease of fuel consumption. In addition, engine emissions of HC, CO and smoke were reduced with exception of NOx for LHR diesel engine than conventional engine.