The present work give emphasis to investigate the exergy and energy analysis of 20% pomegranate seed oil methyl ester with engine operating parameters modification at thermally coated engine. The present work intends to find the optimum engine operating parameters in ceramic coated diesel engine. The engine was initiated with diesel as a working fuel. Followed by, the conventional engine was allowed to work with pomegranate seed oil methyl ester at standard compression ratio, injection timing and injection pressure. The engine operating conditions were altered in 5.2 kW, 1500 rpm, single cylinder water-cooled direct injection engine. In order to utilize the available heat energy, the combustion chamber components were coated with Yttria Stabilized Zirconia. An attempt has been made to use biodiesel sample at varying compression ratio, injection pressure and injection timing by retarding and advancing the standard condition in both conventional engine and thermal barrier coated engine. The variables determined were energy and exergy prospective of cooling water, combustion, fuel input, performance, shaft work and emission characteristics and second law efficiency. From the results, it was observed that the biodiesel sample showed significant engine characteristics at high compression ratio, injection pressure and injection timing in thermally coated engine. In addition, the aforesaid combination offered a considerable performance in thermodynamic analysis of biodiesel sample in both conventional engine and thermal barrier coated engine. The practice of using pomegranate seed oil methyl ester (B20) with engine operating parameters modification in Yttria Stabilized Zirconia coated engine may be considered as the advantageous approach to achieve better engine characteristics. © 2019 Elsevier Ltd