As an alternative to traditional diesel fuel, biodiesel, which is made from renewable feedstocks such as vegetable oils, animal fats, and algae, has emerged as a viable option. It has the potential to give benefits in terms of environmental sustainability, energy security, and economic growth. This comprehensive review paper aims to provide an in-depth analysis of biodiesel technology and its implications across various dimensions. Beginning with an overview of biodiesel's importance in addressing environmental concerns and reducing dependency on fossil fuels, the paper delves into the diverse facets of biodiesel production, properties, environmental impact, economic considerations, and future perspectives. Through a synthesis of existing literature, this review paper elucidates the principles and advancements in biodiesel production methods, explores the sustainability and efficiency of different feedstock sources, analyzes biodiesel's physical and chemical properties vis-a-vis conventional diesel fuel, evaluates its environmental footprint and policy frameworks, and outlines the challenges and opportunities shaping its future trajectory. By offering critical insights and recommendations, this review paper contributes to a deeper understanding of biodiesel as a renewable energy solution and provides guidance for future research, policy development, and industry initiatives aimed at fostering its sustainable growth and adoption