The present study addresses the effect of graphene oxide (GO) nanoparticles dispersed in a mahua biodiesel blend (B20) on diesel engine performance, combustion, and emissions. GO nanoparticles were considered at a level of 75 mg/L. Also, the surfactant CTAB and dispersant Tween 80 were added in a 1:1 ratio. Stability analysis was performed using a photospectrometer. The injection pressure was varied from 200 to 250 bar. The performance parameters such as brake thermal efficiency (BTE) and brake specific fuel consumption (BSFC) were improved by dispersing nanoparticles in B20. Combustion characteristics such as cylinder pressure (CP) and net heat release rate (NHRR) were also greatly improved by nanoparticle dispersion. Finally, emissions of carbon monoxide (CO), unburned hydrocarbon (UHC), smoke, and nitrogen oxides (NOx) were greatly reduced. The dispersant-added GO nanoparticles showed exceptional results. At 250 bar, the B20 + GO 75 mg/L + Tween 75 mg/L showed a 5.067% improvement in BTE and a 6.293% reduction in BSFC. In addition, CP and NHRR were improved by 3.13% and 43.85%, respectively. Finally, reductions in CO, UHC, NOx, and smoke opacity were found to be approximately 27.77%, 37.63%, 11.07%, and 38.55%, respectively.