Abstract This present investigation focuses on combustion-performance-emission characteristics of cerium oxide (CeO2) added palm biodiesel blends in a single cylinder diesel engine. Experiments are conducted in a natural aspirated single cylinder diesel engine at constant speed and varying load (low, medium and full). The experimental result reveals that the addition of CeO2 nanoparticles (50, 100, and 150 ppm) to palm biodiesel blends enhanced brake thermal efficiency (BTE) with reduction in brake specific energy consumption (BSEC) due to improved ignition characteristics of the modified blends. Maximum reduction of CO, HC and NOx emissions have been observed 50, 48.45, and 11.1% at full load respectively. Later on, friction and wear study has been conducted to investigate tribological behavior of cylinder liner-piston materials under lubrication (using contaminated lubricant). The whole friction and wear study has been performed on pin-on-disc tribometer at different speed (300, 400, and 500 rpm) and load (10, 30, and 50 N). The dilution of CeO2 added biodiesel blends with the lubricant resulted low coefficient of friction (COF) and specific wear rate. At varying speed of 300, 400, and 500 rpm: 6.07, 8.5, and 10.9%; and at varying load of 10, 30, and 50 N: 6.07, 10.96, and 11.77% lower average COF have been observed respectively for nanofuels contaminated lubricant compared to diesel contaminated lubricant. Similarly, 7.94, 30, & 28.06% and 7.94, 30.33, & 17.04% lower specific wear rate at varying speed and load have been observed respectively for nanofuels contaminated lubricant.