This work covers the impact of varying injector nozzle hole numbers (INHNs) and fuel injection pressures (IPs) on fuel atomization, performance, and exhaust emission characteristics of a diesel engine. The primary goal of this research was to improve fuel characteristics. Increasing INHNs and fuel IPs have a substantial impact on the blended fuel viscosity and density, which leads to increased atomization and mixing rates, as well as combustion and engine efficiency. The fuel atomization was checked by varying the INHNs with an operating diesel fuel using the ANSYS Fluent spray simulation work. The experimental test was performed on the fuel blends of waste cooking oil (WCO)–diesel blends from 10 to 30% (with an increment of 10%) by evaluating the performance and emission parameters. The fuel IPs were altered on four, such as 190, 200 (default), 210, and 220 bar with a modification of INHN of 1 (default), 3, and 4), each 0.84, 0.33, and 0.25 mm in orifice size, respectively. The simulation result shows that the INHN-4 has better fuel atomization. Whereas the experimental test revealed that the increment in blending ratio of WCO was up to 30%, INHNs and fuel IPs enhanced the BSFC and BTE and reduced exhaust emissions. The results indicate that increasing the fuel IP up to 210 bar with a 4-hole INHN for B30 was the optimal combination for the overall enhancement of BSFC and BTE, as well as lower CO and HC emissions with a minor rise in NOx when compared to the baseline diesel.