Biodiesel is an alternative source of fuel for various automotive applications. Because of the increasing demand for energy and the scarcity of fossil fuels, researchers have turned their attention to biodiesel production from various sources in recent years. The production of biofuels from organic materials and waste components allows for the use of these waste resources in transporting resources and people over long distances. As a result, developing sustainable measures for this aspect of life is critical, as knowledge of appropriate fuel sources, corresponding emissions, and health impacts will benefit the environment and public health assessment, which is currently lacking in the literature. This study investigates biodiesel’s composition and production process, in addition to biodiesel emissions and their associated health effects. Based on the existing literature, a detailed analysis of biodiesel production from vegetable oil crops and emissions was undertaken. This study also considered vegetable oil sources, such as food crops, which can have a substantial impact on the environment if suitable growing procedures are not followed. Incorporating biodegradable fuels as renewable and sustainable solutions decreases pollution to the environment. The effects of biodiesel exhaust gas and particulates on human health were also examined. According to epidemiologic studies, those who have been exposed to diesel exhaust have a 1.2–1.5 times higher risk of developing lung cancer than those who have not. In addition, for every 24 parts per billion increase in NO2 concentration, symptom prevalence increases 2.7-fold. Research also suggests that plain biodiesel combustion emissions are more damaging than petroleum diesel fuel combustion emissions. A comprehensive analysis of biodiesel production, emissions, and health implications would advance this field’s understanding.