Abstract:The paper provides an assessment of first generation biofuel (ethanol and biodiesel) development in Thailand in terms of feedstock used, production trends, planned targets and policies and discusses the biofuel sustainability issues-environmental, socio-economic and food security aspects. The policies, measures and incentives for the development of biofuel include targets, blending mandates and favorable tax schemes to encourage production and consumption of biofuels. Biofuel development improves energy security, rural income and reduces greenhouse gas (GHG) emissions, but issues related to land and water use and food security are important considerations to be addressed for its large scale application.