The application of nano-additive in liquid fuel is an interesting concept yet unexplored to its full potential. In this context, alumina nanoparticles are incorporated with the diesel fuel to investigate the performance, emission and the combustion characteristics of a four stroke single cylinder diesel engine. The characterization studies such as HRTEM and XRD were carried out to analyze the morphology of the nanoparticles. The Alumina nanoparticles were doped (25, 50 and 100 ppm) with the neat diesel using an ultrasonicator, and the prepared fuel samples were subjected for the stability tests. Subsequently, the experiments were conducted in a diesel engine at a constant speed of 1500 rpm using Alumina nanoparticles blended diesel fuels and the results were compared with those of neat diesel. The experimental outcome revealed a substantial enhancement in the brake thermal efficiency and a marginal reduction in the harmful pollutants (such as NOx, CO and smoke) for the nanoparticles blended diesel fuels compared to that of neat diesel. Even though, the alumina nanoparticles blended diesel fuels imparts better performance of the diesel engine, efforts are also underway to trap the possible nanoparticles from the exhaust in order to protect the global environment.