This paper summarizes and analyzes the current situation of biodiesel development and research in China.As Chinese government has attached great importance to biodiesel development and strenthening investment in it,biodiesel has become a hot spot and frontier in the research of new energy,which is a promising step in replacing fossil diesel.For further developing biodiesel research,the paper provides suggestions as planting oil yielding trees in the fit areas,developing waste oil processing technology and designing suitable equipments,improving homogeneous catalysts technology,and increasing biodiesel production level.It prefers that the classic method should be replaced by a new ester exchange method which could gain independent intellectual property rights,and that related policies should be worked out to support and guarantee the smooth development of biodiesel industry.