Sustainable production of renewable energy is being hotly debated globally since it is increasingly understood that first generation biofuels, primarily produced from food crops and mostly oil seeds are limited in their ability to achieve targets for biofuel production, climate change mitigation and economic growth. These concerns have increased the interest in developing second generation biofuels produced from non-food feedstocks such as nonedible oils which potentially offer greatest opportunities in the longer term. A large variety of plants that produce non-edible oils can be considered for biodiesel production such as Madhuca Indica (Mahua) ,Jatropha curcas(Ratan Jyot), Pongamia pinnata (Karanja), Soapnut (Sapindus mukorossi) and Melia azadirachta (Neem) etc., are easily available in developing countries and are very economical comparable to edible oils. This review paper assesses and integrates about the different tree borne oilseeds, extraction of oil, biodiesel processing and effect of different parameters on production of biodiesel. If the developed process is scaled up to commercial levels then excellent business opportunity will be offered by the biodiesel and it could be a major step towards the creation of an eco-friendly transportation fuel that is relatively clean on combustion.