In recent times, demand for energy has significantly increased due to the depletion of fossil fuels and the fast-industrial revolution. This has created a wide space for the development of sustainable and renewable energy sources. Biodiesel has attained exceptional contemplation among other biofuels due to the use of renewable and low-cost resources. Selection of suitable catalyst plays a vital role in biodiesel production by a catalytic transesterification reaction. Compared to homogeneous catalysts, heterogeneous catalysts are most preferred as they have high selectivity and stability with increased biodiesel yield. Heterogeneous catalyst has made incredible development in biodiesel production under mild operating conditions and has less impact on the environment. Nanocatalysts are the effective heterogeneous catalyst, which has brought a tremendous revolution in biodiesel production in recent years. Thus, present review provides a comprehensive analysis of the use of heterogeneous catalyst, importance and challenges associated in biodiesel production. (c) 2020 Elsevier B.V. All rights reserved.