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Nowadays, scarcity arises in almost all our basic needs, including water, fuel, and food. Recycling used and scrapped things for a valuable commodity is highly appreciable for compensating for the globally fast-growing demand. This paper aims to investigate waste tyre oil for preparing biodiesel for CI engines by enhancing their performance with hybrid nanoparticles for preparing nanofuel and hybrid nanofuel. The nanoparticles (30–40 nm) of MWCNT and TiO2 were utilized to prepare nanofuels with nanoparticle concentrations of MWCNT (300 ppm) and TiO2 (300 ppm), respectively. In the case of hybrid nanofuel, the nanoparticle concentration of MWCNT (150 ppm) and TiO2 (150 ppm) was preferred. The performance of the proposed nanofuel and hybrid nanofuel with pure diesel was evaluated. The proposed fuel performance outperforms the combustion performance, has higher engine efficiency, and has fewer emissions. The best performances were noticed in hybrid nanofuel that has 32% higher brake thermal efficiency than diesel and 24% and 4% lower BSFC and peak pressure than diesel, respectively. The emission performance is also 29%, 50%, and 13% lower in CO, HC, and CO2 emissions than that in pure diesel.