Due to diminishing fossil fuel supplies and rising energy needs, there has been an ever-increasing demand for renewable energy sources. The available renewable energy resources, such as solar, wind, hydropower, and biofuels, provide a new way of supplying the world's energy needs. Biofuels stand out among them because they are sustainable and have the potential to bring the idea of a global bioeconomy to life. As a result of their production of biofuels like biomethane, biohydrogen, and biodiesel, atmospheric CO2 is being fixed, eventually lowering the world's carbon footprint. Current developments in the production of bioenergy have concentrated on producing biodiesel among other biofuels. Biodiesel is being produced from a variety of feedstocks using a number of processes, including transesterification, micro-emulsion, direct mixing, and pyrolysis. The most popular method among these is transesterification, which makes use of a variety of catalysts. As a result of the development of nanotechnology, nanocatalysts with desirable properties, such as increased catalytic activity, increased surface area, and superior thermal stability, have been made and modified. In this review, various nanocatalyst types and manufacturing processes are examined in relation to transesterification. It explores how crucial nanocatalysts are in boosting biodiesel production, highlights potential barriers, and makes recommendations for their widespread use in the future.