Biodiesel is an alternative fuel, produced by the transesterification of oils or fats with alcohols. The present work investigates the use of a thin-film system, a rotating tube reactor (RTR) for continuous production and separation of biodiesel. A thin liquid film is created in RTR by strong centrifugal forces generated in the RTR. These thin, intensely mixed films are capable of delivering high heat- and mass-transport rates. In the current study, biodiesel is synthesized from canola oil methanol, and sodium hydroxide as a catalyst. Parameters such as rotational speed, flow rate, temperature, and catalyst concentration were investigated in terms of bound glycerol. Atmospheric pressure and low operating temperature (40-65 degrees C) have been used to achieve Conversions in excess of 98% in residence time of less than 1 mm.