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Recently, with the global shortage of fossil fuels, excessive increase in the price of crude oil and increased environmental concerns have resulted in the rapid growth in biodiesel production. The central reaction in the biodiesel production is the transesterification reaction which could be catalyzed either chemically or enzymatically. Enzymatic transesterification has certain advantages over the chemical catalysis of transesterification, as it is less energy intensive, allows easy recovery of glycerol and the transesterification of glycerides with high free fatty acid contents. Limitations of the enzyme catalyzed reactions include high cost of enzyme, low yield, high reaction time and the amount of water and organic solvents in the reaction mixture. Researchers have been trying to overcome these limitations in the enzyme catalyzed transesterification reaction. This paper is meant to review the latest development in the field of …