The introduction of hydrogen into the engine could enhance its combustion efficiency and emission characteristics. The current study examines the attributes of compression ignition (CI) engines by introducing hydrogen into a biodiesel blend derived from algae. The improved thermal properties of hydrogen, when combined with algae biodiesel, significantly affect the performance, combustion, and emissions of dual-fuel engines. A study was conducted to evaluate the impact of hydrogen enrichment levels of 5%, 10%, 15%, and 20% of the nozzle volume on a biodiesel blend fuel. In comparison to diesel, algal biodiesel reduces emissions of unburned hydrocarbons (HC), carbon monoxide (CO), and oxygen (O2) by 5.19%, 3.61%, and 2.83%, respectively, while increasing nitrogen oxide (NO) emissions by 4.73%. In contrast to biodiesel, diesel demonstrated superior brake thermal efficiency (BTE) and lower specific energy consumption (SEC). Injecting hydrogen into A20 blend fuel at volumes of 5%, 10%, 15%, and 20% results in a respective increase in brake thermal efficiency of 2.65%, 2.97%, 3.50%, and 4.15%. The addition of hydrogen gas to biodiesel blends further enhances their combustion qualities, leading to elevated peak cylinder pressure, temperature, and heat release rate. The results indicate that A20H5, A20H10, A20H15, and A20H20 fuel reduced CO emissions by 3.75%, 8.75%, 12.5%, and 16.25%, respectively, compared to the A20 blend. In the same vein, HC emissions decreased by 5.76%, 10.29%, 15.52%, and 18.98%, respectively, as compared to A20 fuel. However, NO emissions rose by 5.36%, 10.20%, 15.28%, and 23.23%, respectively, for A20H5, A20H10, A20H15, and A20H20 test fuels. Ultimately, the utilization of algal biodiesel and hydrogen enrichment in diesel engines was proven to substantially reduce pollutants while increasing efficiency. This study contributes valuable insights into the intersection of renewable fuels, hydrogen enrichment, and engine technology, with the potential to drive significant advancements in sustainable transportation and environmental conservation.