Biodiesel represents an interesting alternative to fossil fuels. Traditionally the standard method for biodiesel production from oils is alkaline-catalyzed transesterification. Chemical catalysis can be replaced by enzymatic catalysis using lipases (EC 3.1.1.3, triacylglycerol acyl hydrolases), obtained from plants, animals or microorganisms. These biocatalysts act at milder temperature and normal pressure conditions, resulting in lower energy consumption. Also, undesirable side-reactions do not occur, originating pure products. Refined vegetable oils are the most common feedstocks for biodiesel production, accounting for 70-80% of the overall biodiesel production costs. The search for low-cost feedstocks, i.e. non-edible oils and high acidic waste oils/greases, is an alternative to make biodiesel competitive. Non-regioselective and sn-1,3regioselective lipases can catalyze esterification of free fatty acids and transesterification of triacylglycerols with good yields. The lipases used as catalysts for biodiesel production must present alcohol resistance, thermo-tolerance, high stability and activity. Recently, enzymatic processes for biodiesel production have been implemented at industrial scale. Despite this trend, the conventional chemical process still remains the most popular, mainly due to the high cost of commercial lipases. This review consists of an update of the state of the art of enzymatic biodiesel production, including legislation, feedstocks, lipases used for biodiesel synthesis, the role of acyl acceptors and strategies to avoid lipase inactivation, the mechanisms proposed for biocatalysis and the enzymatic bioreactors used. In addition, the economics of the bioprocess is also presented.