The degradation of the environment due to pollution is one of the alarming stages that are required to be addressed. Because of this, biodiesel was supplied as an alternative to diesel. The efficiency of biodiesel could be improved by providing nanoparticles as additives. This study aims to define the role of nanoparticles as an additive to biodiesel. The main motive of this research is to review the applications of nanoparticles to a diesel engine to improve the efficiency of the combustion of fuel and reduce emission by using nanoparticles as an additive and improve fuel properties. Various nanoparticles have been discussed based on their characteristics to use in diesel engines. Further different performance and emission parameters have also been reviewed to determine the overall performance characteristics with nanoparticles as additives to biodiesel.