Abstract. The esterification of free fatty acids with alcohols using montmorillonite (MMT) clay as heterogeneous catalyst is one of the methods to produce fatty acid alkyl ester that can be used as alternative renewable biofuels. However, the unmodified MMT gives low conversion of free fatty due to the limitation of acid sites in the clay structure. This work focuses on preparation of an environmental friendly catalyst from montmorillonite K10 (MMT K10) clay catalyst for the esterification of oleic acid with various alcohols. Esterification of oleic acid with alcohols has been carried out in the presence of metal exchanged MMT K10 (M-MMT K10; M = Fe 3+ and Cu 2+ ). The concentrations of both Fe 3+ and Cu 2+ precursors were varied at 1 M and 4 M. The effect of different alcohols used, molar ratio of reactants and catalyst loading on the esterification reaction was investigated. Among the exchanged clay catalysts, 4 M Fe-MMT K10 was found to be more active for the esterification of oleic acid with methanol. The maximum oleic acid conversion (ca. 68.5%) was achieved after 3 hours of reaction at the reaction temperature of 60 o C with molar ratio of methanol to oleic acid of 10:1 and catalyst loading of 5 wt% relative to the mass of oleic acid. The catalytic activity was found to be directly related to the amount of cation used in the modification step and Brønsted acidity of metal exchanged MMT K10 clay catalyst.