The present study examines the effect of SiO2 nano-additives on the performance and emission characteristics of a diesel engine fuelled with soybean biodiesel. Soybean biofuel was prepared using the transesterification process. Nano-additives characterisations were done using different tests such as FESEM, XRD, EDS, etc., to study the morphology of nano-additives. For proper blending of nano-additives with biodiesel, the ultrasonication process was used. Surfactant was used for the stabilisation of nano-additives. After making all the combinations of nano fuel blends, physicochemical properties were measured as per ASTM standards. Performance and emissions readings were taken at different load conditions. It was found that with the addition of SiO2 nano-additives, brake thermal efficiency (BTE) and brake specific fuel consumption (BSFC) was increased by 3.48-6.39% and 5.81-9.88%, respectively. Significant reduction of CO, CO2, NOx, and smoke emissions were also observed compared to baseline fule due to better combustion efficiency with the use of SiO2 nano-additive.