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Abstract:The ever growing demand for the energy fuels, economy of oil, depletion of energy resources and environmental protection are the inevitable challenges required to be solved meticulously in future decades in order to sustain the life of humans and other creatures. Switching to alternate fuels that are renewable, biodegradable, economically and environmentally friendly can quench the minimum thirst of fuel demands, in addition to mitigation of climate changes. At this moment, production of biofuels has got prominence. The term biofuels broadly refer to the fuels derived from living matter either animals or plants. Among the competent biofuels, biodiesel is one of the promising alternates for diesel engines. Biodiesel is renewable, environmentally friendly, safe to use with wide applications and biodegradable. Due to which, it has become a major focus of intensive global research and development of alternate energy. The present review has been focused specifically on biodiesel. Concerning to the biodiesel production, the major steps includes lipid extraction followed by esterification/transesterification. For the extraction of lipids, several extraction techniques have been put forward irrespective of the generations and feed stocks used. This review provides theoretical background on the two major extraction methods, mechanical and chemical extraction methods. The practical issues of each extraction method such as efficiency of extraction, extraction time, oil sources and its pros and cons are discussed. It is conceived that congregating information on oil extraction methods may helpful in further research advancements to ease biofuel production.