The environmental impact of traditional fuels and related greenhouse gas emissions (GHGE) has promoted policies driven towards renewable fuels. This review deals with green diesel, a biofuel obtained by catalytic deoxygenation of edible and non-edible biomasses. Green diesel, biodiesel, and petrodiesel are compared, with green diesel being the best option in terms of physical–chemical properties and reduction in GHGE. The deoxygenation process and the related types of catalysts, feedstocks, and operating conditions are presented. Reactor configurations are also discussed, summarizing the experimental studies. Several process simulations and environmental economic analyses—up to larger scales—are gathered from the literature that analyze the potential of green diesel as a substitute for petrodiesel. In addition, current industrial processes for green diesel production are introduced. Future research and development efforts should concern catalysts and the use of waste biomasses as feedstock, as well as the arrangement of national and international policies.