The esterification of oleic acid in the presence of magnetic ionic liquid, 1-butyl-3-methylimidazolium tetrachloroferrate ([BMIM][FeCl4]) at reaction temperature of 65 °C has been investigated. Artificial neural network-genetic algorithm (ANN-GA) was used to simultaneously optimized methyl oleate yield and oleic acid conversion for the reaction. It was found that optimum responses for both yield and conversion were 83.4%, which can be achieved using molar ratio methanol–oleic acid of 22:1, catalyst loading of 0.003 mol and reaction time at 3.6 h. Esterification of oleic acid at optimum condition using recycled [BMIM][FeCl4] registered not much loss in catalytic activity after six successive runs. Kinetic study indicated that the reaction followed a pseudo-first order reaction, with activation energy and pre-activation energy of 17.97 kJ/mol and 181.62 min−1, respectively. These values were relatively low compared to homogeneous or heterogeneous catalysts for esterification of oleic acid. Thus, [BMIM][FeCl4] is a promising new type of catalyst for conversion of high free fatty acid (FFA) feeds to biodiesel.