Exergy analysis of a DI diesel engine running on several biodiesel/diesel blends (B5) containing various quantities of expanded polystyrene (EPS) was carried out. Neat diesel and B5 were also investigated during the engine tests. The biodiesel used was produced using waste oil extracted from spend bleaching earth (SBE). The experiments were conducted to assess the effects of fuel type, engine speed, and load on thermal efficiency, exergetic parameters, and sustainability index of the diesel engine. The obtained results revealed that the exergetic parameters strongly depended on the engine speed and load. Generally, increasing engine speed remarkably decreased the exergy efficiency and sustainability index Of the diesel engine. However, increasing engine load initially enhanced the exergy efficiency and sustainability index, while its further augmentation did not profoundly affect these parameters. The maximum exergy efficiency and sustainability index of the diesel engine (i.e. 40.21% and 1.67, respectively) were achieved using B5 containing 50 g EPS/L biodiesel. Generally, the approach presented herein could be a promising strategy for energy recovery from polymer waste, emissions reduction, and performance improvement. The findings of the present study also confirmed that exergy analysis could be employed to minimize the irreversibility and losses occurring in modern engines and to enhance the sustainability index of combustion processes. (C) 2015 Elsevier Ltd. All rights reserved.