This investigation delves into the combined use of nanoparticles added biodiesel blends and hydrogen as secondary fuels in CI engines, intending to minimize the reliance on traditional fossil fuels. Calcined wood ash (CWA) has been used as a heterogeneous catalyst for the preparation of cottonseed biodiesel. XRD, SEM and BET analysis was performed to characterize the catalyst. This study evaluates the impact of adding hydrogen and Cerium oxide (CeO2) nanoparticles to cottonseed biodiesel on a CRDI engine. It showed that H2 at an intake rate of 10 L/min improved the engine's overall performance and reduced hazardous emissions. By incorporating the CeO2 nanoparticles (75 ppm) in a cottonseed biodiesel blend and injecting H2 in the engine the BTE was enhanced by 27.8% and BSFC was decreased by 4.41%. There was a reduction of 24%, 22.8%, 6.42%, and 69.5% for HC, CO, CO2 and smoke emissions. On the other hand, NOx rose by 9.3% compared to diesel. The combustion characteristics, such as cylinder pressure showed 26.5% improvement at full load on inclusion of H2. Additionally, under maximum load, the blend C20 + CeO2+H2 has the shortest ignition delay and combustion duration leading to higher engine efficiency. The results of this investigation offer valuable insights into the potential of biodiesel-hydrogen dual-fuel strategies to reduce the environmental impact of CI engines while promoting sustainable energy practices.