The objective of this research was to develop a two-step biodiesel production from animal fat. With special attention to optimize the first step is acid catalyzed esterification to reduce acid value into low level that can further react in the second step. The second step is alkali catalyzed transesterification for converting triglyceride to biodiesel. Animal fat containing 78.80 mg KOH/g of high acid value was used as raw material. By using response surface methodology, a quadratic polynomial equation was obtained for acid value. After transesterification, the methyl ester yield was 86.10% and the properties of the animal fat biodiesel met biodiesel specification.