In the present work, neat palm biodiesel (BD 100) was utilized in the compression ignition (CI) engine under the influence of thermal barrier coating and cerium oxide (CeO2) nanoparticles.The optimal factor conditions were determined through statistical analysis using the Response Surface Methodology (RSM), with appropriate input parameters provided. The results show that using a thermal barrier coated (TBC) engine with a 200 micron (0.2 mm) thickness of cylinder liner and 45 ppm cerium oxide nanoparticles combined with 100% palm biodiesel significantly improves performance and reduces emissions.The energy and exergy methodology tool was then used to analyze the various fuel conditions in order to examine the variations in energy flow.The assessment criteria that were experimentally confirmed were an average reduction in specific fuel consumption (SFC) of 0.065 kg/kWh and an increase in brake thermal efficiency (BTE) of 4.07%. The reduction of exhaust gases was seen to be significant when compared to those obtained from an uncoated engine running on diesel fuel, as indicated by the carbon monoxide (CO) level of 0.0916% by volume, the unburned hydrocarbon (UBHC) level of 38.2 parts per million (ppm), NOx of 132 ppm and the smoke opacity level of 10.52%.