Increased environmental awareness and depletion of resources are driving industry to develop viable alternative fuels from renewable resources that are environmentally more acceptable. Vegetable oil is a potential alternative fuel. The most detrimental properties of vegetable oils are its high viscosity and low volatility, and these cause several problems during their long duration usage in compression ignition (CI) engines. The most commonly used method to make vegetable oil suitable for use in Cl engines is to convert it into biodiesel, i.e. vegetable oil esters using process of transesterification. Rice bran oil is an underutilized non-edible vegetable oil, which is available in large quantities in rice cultivating countries, and very little research has been done to utilize this oil as a replacement for mineral Diesel. In the present work, the transesterification process for production of rice bran oil methyl ester has been investigated. The various process variables like temperature, catalyst concentration, amount of methanol and reaction time were optimized with the objective of producing high quality rice bran oil biodiesel with maximum yield. The optimum conditions for transesterification of rice bran oil with methanol and NaOH as catalyst were found to be 55 degrees C reaction temperature, I It reaction time, 9:1 molar ratio of rice bran oil to methanol and 0.75% catalyst (w/w). Rice bran oil methyl ester thus produced was characterized to find its suitability to be used as a fuel in engines. Results showed that biodiesel obtained under the optimum conditions has comparable properties to substitute mineral Diesel, hence, rice bran oil methyl ester biodiesel could be recommended as a mineral Diesel fuel substitute for compression ignition (CI) engines in transportation as well as in the agriculture sector. (C) 2007 Elsevier Ltd. All rights reserved.