Vegetable oils and their derivatives (especially methyl esters), commonly referred to as "biodiesel," are prominent candidates as alternative diesel fuels. They have advanced from being purely experimental fuels to initial stages of commercialization. They are technically competitive with or offer technical advantages compared to conventional diesel fuel. Besides being a renewable and domestic resource, biodiesel reduces most emissions while engine performance and fuel economy are nearly identical compared to conventional fuels. Several problems, however, remain, which include economics, combustion, some emissions, lube oil contamination, and low-temperature properties. An overview on all aspects of biodiesel is presented.