The global depletion of fossil fuel reserves and consequent rise in fuel prices have intensified the need to enhance engine thermal efficiency. A promising approach involves recovering waste heat from engine exhaust and converting it into usable energy. This study investigates hydrogen production through exhaust heat utilization in hydrogen-enriched compressed natural gas (HCNG) engines. Experiments were conducted under stoichiometric conditions at 1200 rpm, examining three engine loads (50%, 75%, and 100%) with 20% hydrogen enrichment and 20% exhaust gas recirculation (EGR). The research employs ASPEN Plus software to model hydrogen production via steam methane reforming (SMR), while evaluating heat exchanger and reformer performance. Results indicate peak exhaust temperatures of 921 K, 993 K, and 980 K at respective loads, with corresponding mass flow rates of 0.0944 kg/s, 0.1723 kg/s, and 0.1967 kg/s. Available exhaust heat measured 68 kW, 144 kW, and 161 kW across load conditions. Notably, CO emissions rose by 36.71%, while CO₂ decreased by 32.12% as reformer temperatures increased from 973 to 1273 K. The SMR process yielded 6.85 kg/h of hydrogen at 973 K, requiring an additional 57 kW reformer heat duty. Maximum heat recovery efficiencies reached 44.90%, 54.63%, and 58.21% at 50%, 75%, and 100% loads, respectively. This work demonstrates the dual benefit of SMR-integrated HCNG engines: significant waste heat recovery coupled with clean hydrogen production. By optimizing this system, the study advances sustainable energy solutions, offering a practical pathway to reduce greenhouse gas emissions and accelerate hydrogen adoption in transportation and power generation. The findings underscore the potential of waste heat valorization to support the transition toward carbon-neutral energy systems.