In the rapidly evolving sector of sustainable energy, biodiesel stands out as a promising alternative to traditional fossil-based diesel fuels. Unlike renewable diesel, biodiesel is noted for its economical production process. Nevertheless, its widespread adoption is impeded by three significant challenges: limited oxidation stability, inadequate performance in cold environments, and increased nitrogen oxide emissions. Despite recent technological progress, these issues remain unresolved. This research presents the novel application of ozone cracking as a groundbreaking method to improve biodiesel, effectively tackling these challenges. Biodiesel, synthesized as fatty acid methyl esters (FAME) or fatty acid ethyl esters (FAEE), was sourced from two types of oil: the widely utilized soybean oil and its high-oleic variant. These synthesized esters were subjected to the innovative ozone cracking process, which strategically breaks the carbon-carbon double bonds. Following this, the ozone-cracked intermediates were esterified with methanol or ethanol. The original biodiesel, its ozone-cracked version, and the newly formulated biokerosene underwent thorough analysis using FTIR and mass spectrometry. We conducted a comprehensive evaluation of the critical properties of these products, referred to as biokerosene, including oxidation stability, low-temperature performance, density, viscosity, flash point, and cold filter plugging point (CFPP) tests. The findings clearly indicate that biokerosene not only meets but frequently exceeds the standards of biodiesel, demonstrating outstanding low-temperature performance, making it suitable for use at temperatures as low as -40°C. Moreover, engine tests for biodiesel, biokerosene, and fossil diesel showed that biokerosene significantly reduces emissions of unburned hydrocarbons and carbon monoxide, while also lowering nitrogen oxide emissions. In summary, the enhancement of biodiesel through ozone cracking considerably broadens the potential applications of biokerosene, positioning it as an ideal candidate for use as winter-season diesel or jet fuel, either in pure or blended form.