In the shift toward sustainable energy, biodiesel production has garnered significant attention for its potential as an environmentally friendly alternative to petroleum diesel. This study reviews advancements in biodiesel production technologies, including traditional and emerging techniques such as microwave and ultrasonic-assisted transesterification. Comprehensive cost analyses demonstrate potential operational expense reductions with microwave-assisted and ultrasound-assisted methods. The study identifies critical challenges in feedstock selection, catalyst reusability, and production scalability while proposing innovative solutions, such as integrating waste-derived feedstocks and advanced heterogeneous catalysts. These findings provide practical insights into enhancing biodiesel production's economic feasibility and environmental sustainability.