A substantial viscosity increase by the addition of a low dose of nanoparticles to the base fluids can well influence the dynamics of viscous fingering. There is a lack of detailed theoretical studies that address the effect of the presence of nanoparticles on unstable miscible displacements. In this study, the impact of nonreactive nanoparticle presence on the stability and subsequent mixing of an originally unstable binary system is examined using linear stability analysis (LSA) and pseudospectral-based direct numerical simulations (DNS). We have parametrized the role of both nondepositing and depositing nanoparticles on the stability of miscible displacements using the developed static and dynamic parametric analyses. Our results show that nanoparticles have the potential to weaken the instabilities of an originally unstable system. Our LSA and DNS results also reveal that nondepositing nanoparticles can be used to fully stabilize an originally unstable front while depositing particles may act as temporary stabilizers whose influence diminishes in the course of time. In addition, we explain the existing inconsistencies concerning the effect of the nanoparticle diffusion coefficient on the dynamics of the system. This study provides a basis for further research on the application of nanoparticles for control of viscosity-driven instabilities.