This paper represents the recent development done in biodiesel. It__ampersandsignlsquo;s also highlighting the global trend in biofuel demand and supply, its economic viability, environmental issue and about the next generationbiofuel which may overcome alarming issue related to depletion of conventional fossil reservoir. sThe biodiesel is an alternative diesel fuel that can be produced from renewable feed stock such as vegetable oil waste fry oil and animal fat, however due to technical deficiency they are rarely used purely or with high percentage in unmodified diesel engine. The paper also shows the global trend in bio fuel demand and supply its economic viability its implication for GHG emission and about the next generation bio fuels which will overcome the scientific, technical and sustainability barrier which will result in significant green house gas saving compare to fossil fuels.