Over the years, increased industrialization and population have been identified as key factors in the need for energy. Higher pollution levels and rising fuel prices coincide with the growing demand for renewable energy. Biodiesel, a renewable, biodegradable, and sustainable alternative to fossil fuels, has gained significant attention. Biodiesel offers a promising alternative to traditional biofuel, with benefits including renewability, sustainability, emitting fewer air pollutants, low sulphur content, energy security, being easier to treat, stronger lubricity, and lower levels of exhaust emissions than petroleum diesel fuel. However, challenges remain, including high production costs and land use concerns. Accordingly, in this study, apart from the scope and need of biodiesel, an attempt has been made to address the number of process parameters that influence the production process of biodiesel, the sources of biodiesel production, and the obstacles and possibilities that will shape its future trajectory. This study adds to a greater knowledge of biodiesel as a renewable energy source by delivering crucial insights and suggestions. It also gives advice for future research, policy development, and industry actions targeted at supporting its sustainable expansion and acceptance.