Diesel and jet fuel contribute to ~22–27% and ~ 8–13% of the total energy used in the US transportation sector, producing ~25% and ~ 9% of the total greenhouse gas (GHG) emissions from this sector, respectively. Biobased alternatives, such as biodiesel and renewable jet fuel (RJF) produced from oilseeds, have lower GHG emissions than their petroleum counterparts, are renewable in nature, and support energy security. Thus, the objective of this review was to analyze the information on different oilseed types and characteristics along with their production, harvest and post‐harvest operations; oilseeds conversion to biodiesel and RJF along with their properties and uses; and their cost and environmental status in the USA. More than 80% of the feedstock currently used for biodiesel production in the USA consists of edible oilseeds, including soybean, corn, and canola. Carinata and pennycress are inedible oilseeds that are promising feedstock for biodiesel and RJF production. The biodiesel and RJF produced from oilseeds have similar density, calorific value and cetane number while having lower acid value and sulfur content compared to their petroleum counterparts. At the current state of technology, the retail prices for biodiesel (B20) are 1.0–1.4 times, and RJF are 3–4 times higher than their petroleum counterparts. However, GHG emissions of oilseed‐based biodiesel and RJF are 37–92% and 32–121% lower than their petroleum counterparts, respectively. The economic competitiveness of oilseed‐based biofuels production and use could be improved by enhancing oilseed traits and optimizing field operations, which would further reduce the emissions from the transportation sector. © 2021 Society of Chemical Industry and John Wiley & Sons, Ltd