The reduction of fossil fuels and environmental problems have made researchers look for a substituting fuel that is renewable and produces less pollution. The biological fuels, especially biodiesel, are probable to get common as suitable fuels that are adjustable with the present diesel motors. Biodiesel is an alkyl ester that is obtained from vegetable oils and is identical to diesel #2, but because it causes less pollution it is counted as an environmentfriendly fuel. vegetable oils, waste vegetable oils from cookery, and animal fat are sources of biodiesel production however, these sources are not able to account for human requirements. As microalgaes grow rapidly and can produce large amounts of oil, they can be taken into account as a renewable source for biodiesel. Microalgaes exploit the sunray and carbon dioxide to photosynthesize and to produce oil, but compared with vegetable oils they have a higher percent of oil. These micro-organisms are able to grow in various environmental conditions and can be produced artificially and via photobioreactors. The process of producing biodiesel from microalagaes has three stages: growth, oil extraction and oil exchange into biodiesel, all of which are dealt with in this study. 1)