Hydrogen (H2), being carbon free energy carrier, is best suitable for compression ignition (CI) engines with better performance and lower carbon derived emissions. Novelty of present study is the employment of low-cost catalyst (alumina) for production of H2 reformate (hydrogen rich exhaust gas recirculation: H2EGR) in an indigenous catalytic reactor. Experimental tests were carried out on a CI engine under three conditions; base diesel, exhaust gas recirculation (EGR), and H2EGR. Results indicated that brake thermal efficiency of the engine with H2EGR was higher than EGR and comparable with base diesel operation. All carbon-based emissions including smoke emission decreased significantly with H2EGR than diesel and EGR operations. In addition, oxides of nitrogen emission (NOx) also decreased by about 46% with H2EGR than base diesel operation. It is concluded that H2EGR is a promising option for CI engines for simultaneous reduction of both NOx and smoke emissions along with the additional benefit of higher efficiency. © 2019 Hydrogen Energy Publications LLC