Utilization of renewable and alternative energy feedstocks such as nonedible seeds oil to deal with the increasing energy crises and related ecological concerns have gained the attention of researchers. Biodiesel is an efficient and renewable substitute for diesel engine. This work investigates the potential of inexpensive nonedible seed oil of Linum usitatissimum to synthesize biodiesel using iron sulfate green nanocatalyst through the process of transesterification. Flax seed contains about 37.5% oil content estimated through Soxhlet apparatus. Light microscopy revealed that seed size varies from 3.0 to 6.0 cm in length, 2.0 to 3.3 cm in width, and 0.7 to 1.0 mm in diameter. Color of seed varied from yellow to brown. Characterization of biodiesel is performed through GC–MS and FTIR. Scanning electron microscopy was carried out to study the morphological features of seed coat. Catalyst was characterized by scanning electron microscopy, energy diffraction X‐ray, and X‐ray diffraction. The diffraction peaks of Fe3O4 green nanoparticles were found to be in 2θ values, 30.24°, 35.62°, 38.26°, 49.56°, 57.12°, and 62.78°. Fuel properties of biodiesel are also determined and compared with ASTM standards. Linum usitatissimum biodiesel has density 0.8722 (15°C kg/L), kinetic viscosity 5.45 (40°C cSt), flash point (90°C), pour point (−13°C), cloud point (−9°C), sulfur (0.0432% wt), and total acid number (0.245 mg KOH/g). It is concluded that L. usitatissimum seed oil is a highly potential source for biodiesel production to cope with the challenge of present energy demand.