The scope of this study was twofold: to define the most suitable Egypt's biodiesel source, and to assess the impact of this biodiesel source with the addition of carbon nano additives on diesel engine performance and emissions. Environmental Key Performance Indicators were used as metrics to identify the appropriate biodiesel source with respect to several criteria including environmental, economic, ecological, and demographic situation. The most suitable Egypt's biodiesel source was identified from different sources including algae, Jatropha, coffee waste, rice straw, sugarcane, and switchgrass. Then, the production process of biodiesel from this renewable source by transesterification was carried out using chemical catalyst or biocatalyst. Following this, this source's impact with carbon nano additives on the performance and emissions of a 0.825-L single-cylinder diesel engine was further examined at engine loads varying between 0 and 4 kW and 1500 rpm constant engine speed. The carbon nano additives were added at a different mass fractions of 25, 50 and 100 ppm to Jatropha biodiesel and diesel blend (20 % jatropha biodiesel+ 80 % diesel) by volume. The results showed Jatropha as the most efficient biodiesel source among all the tested fuels to be produced in Egypt. Furthermore, the experimental engine test results revealed that Jatropha biodiesel without and with carbon nano additives consistently has a higher brake thermal efficiency and lower brake specific fuel consumption in comparison to that of diesel fuel. Likewise, Jatropha biodiesel without and with carbon nano additives enhanced the engine performance and consequently reduced the exhaust emissions including CO, CO₂, HC, NOx, and smoke in comparison to that of diesel fuel.