Overconsuming fossil fuels has worsened global warming and air pollution, requiring us to investigate alternate fuels for compression ignition engines. Biodiesel is a renewable fuel and environmentally favorable. Biodiesel's most significant disadvantage is increased nitrogen oxide (NOx) emissions. The intent of the present study was to examine the impact of antioxidant diphenylamine (DPA) and nanoparticle ceria (CeO2) additive inclusion in a B30 blend on engine performance and exhaust emission characteristics. For this study, diesel, Jatropha biodiesel (B30), 100 ppm of antioxidant diphenylamine (50 ppm) with ceria nanoparticle (50 ppm) is added to the B30 blend named as B30+DPA100 and antioxidant diphenylamine (50 ppm) with ceria nanoparticle (50 ppm) is added to the B30 blend named as B30+DPA50+CeO250 fuel blends has been used. A hybrid response surface methodology and multi-criteria decision-making techniques (entropy method, TOPSIS, and VIKOR) have been used to develop a sustainable model and find the optimal setting of input parameters in terms of ranking. From experimental findings, the inclusion of antioxidants (DPA) and nanoparticle (CeO2) at 50 ppm to B30 significantly reduced NOx emission. The brake-specific fuel consumption and NOx have been found reduced by 5.67% and 18.87%, respectively, for B30+DPA50+CeO250 as compared to B30. At the same time, brake thermal efficiency increased by 1.01%. The brake mean effective pressure and maximum cylinder pressure) have been found increased by 0.68% and reduced by 4.52%, respectively, for B30+DPA50+CeO250 as compared to B30. The alternative ranking of the input parameters has been found fuel injection pressure (300), compression ratio (17), and load (12) as Rank 1 for TOPSIS and VIKOR. Therefore, the B30+DPA50+CeO250 blend is appropriate for improving diesel engine performance and diminishing exhaust emissions.