Worldwide energy demand has been growing steadily during the past five decades and most experts believe that this trend will continue to rise. The amount of emitted harmful emission gases increases in parallel with increasing energy consumption. This increase has forced many countries to take various precautions, and various restrictions on emitted emissions have been carried. In this study, effects of addition of oxygen containing nanoparticle additives to biodiesel on fuel properties and effects on diesel engine performance and exhaust emissions were investigated. Two different nanoparticle additives, namely MgO and SiO2, were added to biodiesel at the addition dosage of 25 and 50 ppm. Fuel properties, engine performance, and exhaust emission characteristics of obtained modified fuels were examined. As a result of this study, engine emission values NOx and CO were decreased and engine performance values slightly increased with the addition of nanoparticle additives.