Automobile pollution has escalated the environmental degradation manifold, causing climate change. Numerous research works are being carried out to find alternative fuels that can improve efficiencies and limit emission levels. The present research work focuses on experimental investigation of DICI-VCR engine is performed to evaluate the performance and emission (PCE) characteristics using ethanol and Al2O3 nanoparticle blended biodiesel. Nine blends of biodiesel, diesel, and ethanol were prepared on v/v basis. Biodiesel was mixed in constant proportions and Al2O3 nanoparticles were added as additives in the blends with the proportion of 100 ppm. Physical and chemical properties were tested and found within the limits of ASTM D6751 and ASTM D975 standards. Experiments were conducted at constant compression ratio (18:1) with variable loading at full throttle condition. The study showed that the reduction in performance and emission characteristics such as brake thermal efficiency, mechanical efficiency, volumetric efficiency, carbon monoxide, and hydrocarbons ranges from 3.7% to 8.7%, 3.4% to 9.9%, 0.3% to 0.6%, 7.5% to 26.5%, and 8% to 27% respectively whereas increment in brake specific fuel consumption, exhaust gas temperature, carbon dioxide, and oxides of nitrogen as 4.5% to 22.4%, 0.9% to 4.8%, 17.5% to 43%, 4% to 9% respectively observed in comparison with neat diesel.