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Biodiesel is a fuel that has numerous benefits over traditional petrodiesel. The transesterification process is the most popular method for biodiesel production from various sources, categorized as first, second and third generation biodiesel depending on the source. The transesterification process is subject to a variety of factors that can be taken into account to improve biodiesel yield. One of the factors is catalyst type and concentration, which plays a significant role in the transesterification of biodiesel sources. At present, chemical and biological catalysts are being investigated and each catalyst has its advantages and disadvantages. Recently, nanocatalysts have drawn researchers' attention to the efficient production of biodiesel. This article discusses recent work on the role of several nanocatalysts in the transesterification reaction of various sources in the development of biodiesel. A large number of literature from highly rated journals in scientific indexes is reviewed, including the most recent publications. Most of the authors reported that nanocatalysts show an important influence regarding activity and selectivity. This study highlights that in contrast to conventional catalysts, the highly variable surface area of nanostructure materials favours interaction between catalysts and substrates that efficiently boost the performance of products. Finally, this analysis provides useful information to researchers in developing and processing cost-effective biodiesel. Image 1 • Transesterification is the most efficient catalytic mechanism for biodiesel production. • Nanocatalysts show the important influence in selectivity in transesterification. • Nanocatalysts can be used at a lower temperature and speed up the reaction process. • Comparative benefits and challenges of nanocatalysts are discussed. [ABSTRACT FROM AUTHOR]