AbstractThe growing demand of sustainable and environment friendly energy sources has spurred research and development efforts towards the integration of biofuels in various applications, particularly in internal combustion engines. Microemulsion technique is a new and innovative alternative to traditional fossil fuel that has gained a significant attention in recent years. This type of bio fuel is made by blending of small amount of biofuel and large amount of conventional diesel fuel. This review paper explores the potential of enhancing the performance of Compression ignition (CI) engines by incorporating additives into hybrid biofuels. The study focuses on the synergistic effects of combining traditional fossil fuels with bio‐derived components, such as ethanol, biodiesel, and other bio‐based additives. This review paper aim is to explore the performance of a 4‐stroke, single‐cylinder, direct injection Compression Ignition (CI) engine at different loads using different fuels blends like CNWEDB, BFNP150, PPNP150, and ME Diesel/Colza oil. The review outlines recent advancements in biofuel technology, including novel production methods and feedstock options, aiming to overcome limitations associated with conventional biofuels. The article aims to investigate the potential of vegetable oil in formulating MHBF, analyzing its performance and emissions in CI engines. The engine performance parameters viz., brake thermal efficiency brake specific fuel consumption have been reviewed and found that these values are comparable to the biodiesel blends with pure petrodiesel. At 60%, 80%, and full load condition the BTE of microemulsion diesel/colza oil is increasing while at 40%, 80%, and full load the BSFC is decreasing. Emissions reported by the various researchers, however, have a positive attribute with respect to NOx, CO, and UHC. At full load CO is decreasing and at all load conditions the value of UHC is decreasing. The paper concludes with a discussion on future research directions, emphasizing the need for continued innovation to address emerging issues and optimize the performance of CI engines for a sustainable and energy‐efficient future.