A rapid growth in vehicles and population has resulted in a rapid rise in energy demand. Since fossil fuels are rapidly depleting, researchers are focused on finding alternative fuels for diesel as a result of climate change. The country imports 79% of its oil needs at the moment and plans to reduce that to 70% by 2024. To achieve this, alternative fuel sources that are non-toxic, renewable, and inexpensive are needed. It is emerging that algae-based biodiesel could be a viable alternative to diesel fuel. It has been found that microalgae oil can be used to produce biodiesel. The present study investigates the preparation of a biodiesel fuel blend of 80-20 (80 % diesel and 20 % biodiesel) using nanoparticles of Bi2O3. This research tests the fuels properties in accordance with ASTM standards. It is possible for nanoparticles to enhance fuel properties and overcome certain disadvantages in general by being adding as fuel additives. In this study, Green Microalgae blends and diesel blends containing Bi2O3 nanoadditives were compared for performance and emission characteristics. In experiments, the use of a biodiesel blend with nano-additives resulted in better performance characteristics and lower exhaust emissions.