Biodiesel is an alternative to fossil-derived diesel with similar properties and several environmental benefits. Biodiesel production using conventional catalysts such as homogeneous, heterogeneous, or enzymatic catalysts faces a problem regarding catalysts deactivation after repeated reaction cycles. Heterogeneous nanocatalysts and nanobiocatalysts (enzymes) have shown better advantages due to higher activity, recyclability, larger surface area, and improved active sites. Despite a large number of studies on this subject, there are still challenges regarding its stability, recyclability, and scale-up processes for biodiesel production. Therefore, the purpose of this study is to review current modifications and role of nanocatalysts and nanobiocatalysts and also to observe effect of various parameters on biodiesel production. Nanocatalysts and nanobiocatalysts demonstrate long-term stability due to strong Brønsted-Lewis acidity, larger active spots and better accessibility leading to enhancethe biodiesel production. Incorporation of metal supporting positively contributes to shorten the reaction time and enhance the longer reusability. Furthermore, proper operating parameters play a vital role to optimize the biodiesel productivity in the commercial scale process due to higher conversion, yield and selectivity with the lower process cost. This article also analyses the relationship between different types of feedstocks towards the quality and quantity of biodiesel production. Crude palm oil is convinced as the most prospective and promising feedstock due to massive production, low cost, and easily available. It also evaluates key factors and technologies for biodiesel production in Indonesia, Malaysia, Brazil, and the USA as the biggest biodiesel production supply.