With increasing demand for petroleum with each passing day, it becomes utmost necessity to search for alternate fuels, which are renewable, and in that biodiesel emerges as a real solution. Biodiesel is cleaner burning fuel than diesel and a suitable replacement. Since the demand and cost of petroleum based fuel is growing rapidly, and if the present pattern of consumption continues, these resources will depleted in few years. Hence, efforts are being made to explore for alternative sources of energy. An alternative fuel must be technically feasible, economically competitive, environmentally acceptable and readily available. Biodiesel can be produced in many ways. The method used in the laboratory is Transesterification, which is actually replacement of alcohol group from an ester by another alcohol.