Rapid depletion of fossil fuel demanded the alternative and sustainable fuel, which can replace the conventional fuel for the fulfillment of energy crisis with minimal environmental impact. Hydrogen induction along with biodiesel is one of the preeminent replacements for conventional fuels, which ensures stringent emission norms and reduces energy consumption. During this investigation, performance and emission of a CI engine for biodiesel BD40 (v/v) along with a fixed quantity of hydrogen flow rate (4 L per minute) were evaluated and compared with diesel fuel (DF). A 1500 rpm constant engine speed at variable engine load condition and 10% exhaust gas recirculation (EGR) technique was employed throughout the experiment. The induction of hydrogen with BD40 improves brake thermal efficiency (BTE), brake specific energy consumption (BSEC), carbon monoxide (CO), unburned hydrocarbon (UHC) emission and smoke opacity. About 21.9% BTE enhanced at full load condition for induction of hydrogen with BD40. The employment of EGR system reduced exhaust gas temperature (EGT) by 12.8% and nitrogen oxide (NOx) emission by 20% at full load condition, but showed an adverse effect on BTE, BSEC as well as on emission parameters like carbon dioxide (CO2), CO, UHC and smoke opacity. Thus, usage of hydrogen in dual fuel mode in a CI engine improves the performance and reduces the exhaust emissions and employment of EGR technique results in lower NOx emissions. (C) 2016 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.