The imperative for sustainable energy development has become increasingly evident, primarily due to the finite nature of fossil fuel reserves and the associated environmental apprehensions. In light of these concerns, biodiesel emerges as a compelling alternative. Its key attributes include renewability, reduced emissions, and the ability to be produced from a variety of sources, rendering it a promising candidate in addressing these energy and environmental challenges. Biodiesel holds significant promise as an energy source due to its lower environmental impact compared to traditional diesel fuels. This alternative fuel is non-toxic, safe, and biodegradable, primarily derived from renewable biological feedstocks like used cooking oils, making it an affordable and sustainable resource. This paper provides a comprehensive review encompassing biodiesel properties, feedstock options, diverse production techniques, catalyst variations, and the challenges associated with biodiesel production. Furthermore, this study delves into the evolution of biodiesel conversion processes and innovative approaches to enhance scalability. Detailed examinations of pivotal factors influencing transesterification, including catalyst weight percentage, temperature, alcohol-to-oil molar ratio, and reaction duration, are presented. Ultimately, this review concludes with future perspectives and suggestions. It emphasizes the importance of judiciously selecting catalysts, feedstock materials, and production methodologies to develop cost-effective, energy-efficient biodiesel solutions with reduced environmental impact and enhanced operational efficiency.