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The search for an effective solution to improve performance and emission characteristics of internal combustion (IC) engines used in the commercial sector is regarded as one of the most important and essential issues in recent years due to increasing levels of pollution. Nanoparticles with their additive ability to increase fuel reactivity and atomization, due to their large surface area and high heat transfer coefficient, can improve the performance and emission characteristics of a fuel. This review highlights the use of nanoparticles as fuel additives to enhance the emission and performance characteristics of IC engines. Detailed comparisons of performance, emission, and combustion characteristics of IC engines using fuels blended with nanoparticles have been done. Nanoparticles were observed to be an oxygen buffer for fuel combustion and boost fuel atomization, thus enhancing engine performance. While alumina exhibited a decrease in levels of HC and CO but a considerable increase in NOx, graphene nanoparticles and ceria were found to be particularly effective in enhancing engine performance. Detailed study has been done on other nanoparticles, including metal‐oxide, nonmetal‐oxide as well as carbon nanoparticles. Overall, the use of nanoparticles can enhance the thermophysical characteristics of fuels, improving the emission and performance characteristics of engines. The review suggests that selecting the right dosage and variety of nanoparticles is crucial for optimizing engine performance, and thus directly helps in tackling the ongoing pollution problem. [ABSTRACT FROM AUTHOR]