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Biodiesel, which is made from the methyl ester of vegetable oils, is becoming more and more popular as an alternative fuel for compression ignition engines because it is good for the environment and can be used as a replacement fuel without making major changes to the engine. Biodiesel offers several key advantages, including its ready availability, environment friendly and its ability to contribute to lower carbondioxide levels in the atmosphere. An exhaust gas recirculation (EGR)-equipped Kirloskar compression ignition engine is used in this research to examine the influence of micro-explosions on the reduction of nitrogen oxides and smoke. The fuel chosen is Karanji oil methyl ester. The experiment involved varying the exhaust gas quantity in increments of 5%, ranging from 5% to 15%, as exhaust gas recirculation (EGR) is recognized as an effective technique for reducing NOx emissions. Similarly, the study also adjusted the water content, ranging from 5% to 15% in 5% increments.