In this work, a nanocomposite (designated as HPAA) was fabricated using palygorskite clay (PC) modified by high energy electron beam (HEEB) irradiation, aminopropyltriethoxysilane (APTES), and amino siliconoil (ASO), and used as an additive for diesel fuel (DF) to enhance combustion efficiency (CE). HPAA possessed a micro/nano network structure and could adsorb DF molecules on the surface of HPAA nanorods, which promoted the contact of DF with oxygen and thus effectively enhanced the CE of DF. Additionally, this technology could enlarge the diameter of flying ash (FA), decrease FA amount, and reduce harmful gases emission during the combustion, which potentially favored the reduction of PM2.5. After combustion, the residue, carbon nanoparticles wrapping on the surface of HPAA nanorods, was obtained and displayed a high removal capacity on cadmium ions (Cd2+) from aqueous solution. This work provides a promising approach to improve the utilization efficiency of DF in boilers, lower PM2.5, and meanwhile decrease Cd2+ contamination, which might have a high application potential in heating and power generation.