Production of biodiesel from industrial waste oil is becoming a primary candidate to overcome the problems associated with energy crisis and environmental pollution. In this study, low cost feed stocks leather industry fleshing waste was investigated experimentally for the production of biodiesel. The fleshing oil, which was investigated experimentally, had high acid value of 24.66mgKOH/g and FFA level of 12.33%. As a result, acid pretreatment followed by transestrifcation reaction path was chosen to produce biodiesel. Boric acid was used to reduce the lime of the flesh and sulfuric acid as catalyst and methanol as alcohol were used to reduce the FFA of the fleshing oil bellow 2.5% in the pretreatment reaction. After reducing the FFA of the fleshing oil bellow 2.5%, transestrification reaction was conducted with alkaline catalyst potassium hydroxide. Several experiments were performed in a wide range of operating conditions to screen out the optimum operating parameters for the extraction of biodiesel from fleshing oil. The result demonstrated that 6:1 ration of methanol to oil, 1% of catalyst, temperature of 60 o c and a contact time of 1hr are found to be the optimum operating parameters in the transesterification reaction. Over 97% conversion of the oil was achieved at the specified optimum operating conditions. Characterization the produced FAME reveals that viscosity of 4.47mm 2 /s, density of 876kg/m 3 , cetane number of 40.7 and iodine value of 61.3gI 2 /100ml were obtained. The fleshing oil biodiesel was compared with the international standards (ASTM and EN) and the result was in good agreement.