Biodiesel and oxyhydrogen (HHO) gas have shown promising results in improving engine performance and emissions. In this work, the effects of HHO gas and 5% biodiesel blends (B5) and their combined use in a 315 cc diesel engine have been analyzed. Biodiesel is produced by base catalyzed transesterification and cleaned by emulsification. Its calculated cetane index (CCI) was 61.4. HHO gas is produced from electrolysis of concentrated potassium hydroxide solution. The use of 5% biodiesel blend resulted in a significant rise of 9.4% in the brake thermal efficiency (BTE) and a maximum reduction of 8.19% in the brake specific fuel consumption (BSFC). HHO enrichment of diesel and biodiesel at 2.81 L/min through the intake manifold improved the torque and power by an average of over 3%. HHO addition also improved the BTE of diesel by a maximum of 3.67%. The combination of high CCI biodiesel fuel and HHO creates a mixture that has shortened the ignition delay (ID) to the point that adverse effects were observed due to the premature combustion as shown by the average decrease in the BTE of 2.97% compared to B5. Thus, B5, on its own, is found to be the optimum fuel under these conditions.