The depletion of fossil fuels, along with the environmental damages brought by their usage, calls for the development of a clean, sustainable and renewable source of energy. Biofuel, predominantly liquid biofuel such as biodiesel, is a promising alternative to fossil fuels, due to its compatible direct usage within the context of compression ignition engines. However, the industrial production of biodiesel is far from being energy and time efficient, which contributes to its high production cost. These inefficiencies are attributed to poor heat and mass transfer of the transesterification reaction. The utilisation of microchannel reactors is found to be excellent in escalating heat and mass transfer of the reactants, benefitting from their high surface area-to-volume ratio. The microchannel also intensifies the mixing of reactants via the reactor design, micromixers and the slug flow patterns within the reactor, thus enhancing the contact between reactants. Simulation studies have aided in the identification of mixing regimes within the microchannel reactors, induced by various reactor designs. In addition, microwave irradiation heating is found to enhance biodiesel production by localised superheating delivered directly to the reactants at a molecular level. This enables the reaction to begin much earlier, resulting in rapid biodiesel production. It is postulated that the synergy between microchannel reactors and microwave heating would catapult a pathway towards rapid and energy-efficient biodiesel production by enhancing heat and mass transfer between reactants.