Biodiesel has received much attention in recent years. Although numerous reports are available on the production of biodiesel from vegetable oils of terraneous oil-plants, such as soybean, sunflower and palm oils, the production of biodiesel from microalgae is a newly emerging field. Microalgal biotechnology appears to possess high potential for biodiesel production because a significant increase in lipid content of microalgae is now possible through heterotrophic cultivation and genetic engineering approaches. This paper provides an overview of the technologies in the production of biodiesel from microalgae, including the various modes of cultivation for the production of oil-rich microalgal biomass, as well as the subsequent downstream processing for biodiesel production. The advances and prospects of using microalgal biotechnology for biodiesel production are discussed. (C) 2009 Elsevier Ltd. All rights reserved.