In the pursuit of finding an alternative for the fossil fuel which is continuously being depleted, biodiesel has attracted a lot of attention as a renewable source. But the biodiesel production from plant oils is not very cost-effective and it has led to explore the possibility of the potential of microbial lipids for the same. Rhodotorula sp. has been a target of increasing attention for the producing microbial lipids as raw material for the biodiesel production. Rhodotorula glutinis has been found to be most promising as modulated culture conditions have shown that it can be exploited for increased lipid production which can be used in biodiesel technnology.