The ubiquitous challenge of achieving a harmonious balance between the growing energy demands and the imperatives of environmental sustainability remains formidable. The exploration of alternative fuels and fuel-blending techniques for CI engines emerges as a pivotal strategy to ameliorate emissions without compromising engine performance. This research elucidates the experimental investigation into the performance and emission characteristics of a CI engine when operated on diesel and a formulated blend of diesel and distilled water. A meticulous examination of the engine's thermal efficiency, brake specific fuel consumption (BSFC), brake thermal efficiency (BTE), and emissions (such as NOx, CO, CO2, and particulate matter) across a spectrum of load conditions was undertaken. A series of tests were conducted by employing neat diesel and diesel-water emulsions in varied volume fractions, ensuring a comprehensive analysis under identical operational conditions. Emulsified fuels were prepared using a surfactant to stabilize the water in diesel to prevent phase separation and ensure a homogeneous mixture.