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Experimental investigations on performance and emission characteristics of internal combustion engine fuelled by polanga oil diesel fuel blend were carried out in this research work. To enhance the engine performance, iron oxide nanoparticles were doped with polanga oil–diesel fuel blend as additive. Performance and emission characteristics of diesel engine were studied for 10%, 20% and 30%(by weight) polanga oil with neat diesel. Iron oxide nanoparticles were added in three difference concentrations viz., 100, 200 and 300 ppm levels in all the three polanga oil–diesel fuel blends to study their effects on engine performance. The engine was loaded at five different brake powers for each polanga oil–diesel–iron oxide nanoparticle fuel blends. It was observed that the presence of iron oxide nanoparticle reduces the ill effects of polanga oil in diesel. At 25% polanga oil blend with diesel and iron oxide nanoparticles concentration of 150 ppm, the engine performance was observed to be similar to that of running on neat diesel. Hence doping of iron oxide nanoparticle with Polanga oil–Diesel fuel could be one of the potential substitutes for diesel in running CI engines.