The novelty of this research work deals with green synthesized nanoadditives (5% of graphene, carbon nanotubes, and carbon black), oxygenated additives (5% of n‐butanol, n‐heptane, and n‐pentanol), and then the test fuels are prepared by blending of 20% of soybean biodiesel and 70%, 80%, and 100% of premium diesel. The experimental outcomes revealed that the Nickel Chromium Aluminum (NiCrAl‐120 micron), partially stabilized zirconia, and titanium dioxide ceramic composites at about 400 microns achieve the thermal barrier coat of low heat rejection (LHR) engine parts by the air‐plasma spray method. Compared with Blend B, green synthesized carbon black (5%), premium diesel (70%), and n‐pentanol (5%) mixed soybean biodiesel (20%) fuel (Blend E) tested on the LHR engine achieved 4.90% higher brake thermal efficiency and 25.31% lower brake‐specific fuel consumption at peak load owing to the presence of an oxygenated agent (n‐pentanol) in the fuel blend, which minimizes carbon deposition. The carbon monoxide, hydrocarbon, NOx, and smoke emissions were reduced by 25.58%, 29.41%, 5.06%, and 7.75% when compared to Blend B at peak load. Then, the in‐cylinder pressure and heat release rate were found to be 4.52% and 8.87% higher for Blend E at peak load compared to Blend B. This was because the mix of oxygenated additive and carbon black bio‐based nanofuels made the combustion process go faster. These fuel blends were tested on LHR diesel engines at various load conditions.