Transportation sector has a dominant role in global fuel consumption and greenhouse gas emissions. Due to the dramatic increase in greenhouse gas emissions, sustainable development of this sector has raised the concern in many countries. Biodiesel is a renewable energy that has great potential to serve as an alternative fuel to fossil diesel in the compression ignition (CI) engine. A wide variety of biodiesel research on transesterification, performance and emission analysis is currently available worldwide. However, the study on techno-economic and feasibility of biodiesel fuel is limited. Therefore, this study is focused on biodiesel production and techno-economic comparison among palm, jatropha curcas and calophyllum inophyllum biodiesel as transportation fuel. Moreover, the present study attempts to find out the impact of biodiesel implementation towards the energy, environmental and economy scenario. Finally, this study also serves as a guideline for further investigation on biodiesel policy and implementation before the wider utilization of this alternative fuel.