The hydrogenation of biodiesel was investigated in presence of thermoregulated phase-transfer catalysts to produce fatty alcohols. The thermoregulated catalytic system Pd/IV (IV: P-ligand, tri-(methoxyl polyethylene glycol)-phosphite) exhibited an efficient catalytic performance for the hydrogenation. It was also found that the steric resistance of the P-ligand, to a large extent, affected the performance of catalytic system. Using Pd/IV as catalyst, the product could be easily separated from the catalytic system and the catalyst was of good reusability. Thus, a clean and environmentally friendly strategy for the production of fatty alcohol is provided. (C) 2010 Published by Elsevier Ltd.