The energy issue is an extensively discussed subject. There are many concerns about the future of energy supply for human beings. Conventional sources are declining and the newcomers are starting to take place. Biodiesel is one of these alternatives and may be the most important one among the renewable energy sources for its convenience in usage as a fuel in the transportation sector. Although biodiesel was developed some two to three decades ago, it is not commonly used, mainly due to high production costs. Recently, increasing concerns on environmental protection have accelerated the popularity of biodiesel. In addition, interests in biodiesel have also been emerged with recent fluctuations in crude oil prices and uncertainities about the future energy security. The aim of this article is to make a review on the history, production techniques, and applications of biodiesel. The regulations concerning the biodiesel sector in European Union (EU) and Turkey with regional production histories are mentioned. The recommendations for developing the Turkish biodiesel sector are also given.