In this study, the effect of ethanol-gasoline blend with cerium oxide nanoparticles as additive on a Tata Nano twin-cylinder SI engine was investigated. In this work, the combustion, performance and emission tests were conducted. The experiment fuels were prepared using 99.9% pure ethanol and gasoline with cerium oxide nanoparticles. The volumetric percentages of ethanol-gasoline blends with cerium oxide nanoparticles additive are in the ratio of E30, E40 and E50. These represent the ratios of ethanol amount in the total blend and the rest of gasoline. Additionally, 100mg, 150mg and 200mg cerium oxide nanoparticles additive are mixed to E30, E40 and E50, respectively. The venture of this investigation was to reformulate the fuel to utilize the cerium oxide nanoparticles with ethanol and gasoline blend to develop the fuel's performance and to decrease the pollution from the engine. The experimental results expose an increase in brake thermal efficiency for the nanoparticles blends. In the emission test CO, CO2, HC and NOx are noticeably reduced, and O-2 increased for all the blends. In combustion analyses, the cylinder pressure is higher for nanoparticles blends, when compared to that of the sole fuel.