The concerns on the depleting petroleum resources and increasing environmental problems have driven the scientific community worldwide to develop large-scale non-petroleum-based alternative fuels, such as bioethanol and biodiesel. Biodiesel produced through the transesterification of vegetable oils or animal fats are highly attractive. On the other hand, ionic liquids which possess properties that are more environmental friendly have found significant applications as solvents and catalysts for reaction and separation. It is also beginning to find its way in many of the chemical process applications and has attracted significant attention including biodiesel production. This paper provides a brief overview on the feasibility of applying ionic liquids in biodiesel production for the purpose of powering diesel engines for transportation and utility generation. The potential of applying ionic liquids as catalyst and solvent for enzymatic production of biodiesel from feedstock is particularly highlighted. © 2014 The Korean Society of Industrial and Engineering Chemistry.