Due to the growing familiarity with the depletion of non-renewable energy reserves and environmental problems, biodiesel has become increasingly popular in recent years. As an elective fuel for diesel engines, it is becoming increasingly important owing to fact to the declining oil reserves and the environmental effect of oil-fueled gas fumes. In recent days, waste cooking oil has been used as feedstock to bring down the cost of biofuel. The cooking oils which are used as raw material, the adaptation of the continuous process of transesterification and the recuperation of excellent glycerol from biodiesel (glycerol) are important strategies to be considered in order to reduce the cost of biodiesel. There are four main approaches to producing biodiesel, arranging and mixing, miniaturized magnitude emulsions, hot splitting (pyrolysis) and transesterification. In any case, as biodiesel is processed from vegetable oils and creature fats, there are concerns that biodiesel feedstocks that compete with long-term sustenance supplies. As of now, that oil prices, from ecological points of interest, governmental procurement policies, progress on agricultural yields and higher GHG production from non-renewable energy sources have persuaded strategy manufacturers, financial experts and scientists to consider increasingly about replacing petroleum products to save the earth. This paper discusses the history and current innovation of Biodiesel, including the various forms of biodiesel, the features, processing and dynamics of the Biodiesel industry. The use of biodiesel in the automotive sector, the challenges of developing the biodiesel sector.