Abstract The environmental concern and availability of fuels are greatly affecting the trends of fuels for transportation vehicles. Biodiesel is one of the options as alternative transport fuel. This can be produced from straight vegetable oils (SVOs), oils extracted from various plant species and animal fats. Amongst many resources, availability and cost economy are the major factors affecting the large scale production of the biodiesels. The transesterification is one of the production processes for biodiesel, but incomplete esterification of all fatty acids in the starting material, lengthy purification methods such as water washing, relatively long reaction times, contamination and separation difficulties associated with co-production of glycerol and saponification of the starting material under certain reaction conditions are still being major challenges in the biodiesel production. Technological advancement and enhanced production methods are the demand of present time for large scale and sustainable production of biodiesel. In the present paper, comprehensive review on its production process, feed stock and its applications have been made. From many case studies it was concluded that engine performance with B20 biodiesel blends, and mineral diesel were found comparable.