Growing concerns about energy security and environmental sustainability have fueled demand for sustainable and renewable energy sources in recent years. Biodiesel, a renewable alternative to conventional fuels, has gained significant attention as a potential source of energy. However, the stability of biodiesel during storage and its susceptibility to oxidation remain major challenges. To address these issues, researchers have turned their focus to the utilization of natural antioxidants. Studies on sources of natural antioxidants, particularly those made from waste, such as food, have been extensively conducted. However, there are still some restrictions, such as inconsistency in quality, the development of microbes, and difficulties with regulations, all of which have an impact on sustainability and the phenolic contents. Phenolic compounds are known for their excellent antioxidant properties and ability to inhibit the oxidation process. The review provides an overview of various underutilized plant resources and agricultural wastes that are rich in phenolic contents and demonstrate higher antioxidant activities, such as Vitex doniana, Uapaca kirkiana, Parinari curatellifolia, Tamarindus indica L, fruit peels, and crop residues. It discusses the extraction methods employed to obtain phenolic antioxidants from these sources and highlights their antioxidant activities. Additionally, the review examines the effects of phenolic antioxidants on key parameters, including induction period, peroxide value, acid value, and viscosity. The review concluded by highlighting the potential of underutilized plant resources and agricultural wastes as sustainable sources of phenolic-rich natural antioxidants for enhancing biodiesel stability. According to the literatures, phenolic antioxidants present in underutilized plant resources and agricultural wastes can chelate metal ions, scavenge free radicals, and break oxidation chain reactions, thereby preventing the degradation of biodiesel. Moreover, the limitation of the use of natural antioxidants in the stabilization of biodiesel like instability at high temperatures has been highlighted.