The development of technologies to promote residual oil reuse has been encouraged, aiming to reduce the environmental impact and promote sustainability. In this study, a biphasic magnetic catalyst with composition equal to ZnO-Ni0.5Zn0.5Fe2O4 was synthesized and applied to the fatty acid alkyl ester (FAAE) production from residual oil. The ZnO-Ni0.5Zn0.5Fe2O4 catalyst was synthesized by combustion reaction and characterized by X-ray diffraction (XRD), textural analysis, Fourier transform infrared spectroscopy (FTIR), Raman spectroscopy, thermogravimetry, particle size distribution, scanning electron microscopy, magnetic measurements, quantification of acidic sites by TPD-NH3, and catalytic tests. The efficiency of catalyst synthesis was evaluated by XRD, FTIR, and Raman spectroscopy experiments. Granulometric analysis and SEM images confirmed the presence of the agglomerates and particles with a wide size range. The catalyst presented soft magnetic behavior, with high saturation magnetization. Additionally, the catalytic activity of the ZnO-Ni0.5Zn0.5Fe2O4 system showed an average conversion of 73% for the methyl route. The results indicate that the reuse of residual oil is feasible for FAAE production, contributing to sustainable fuel development. Moreover, it allows the reintroduction of waste oil into the biodiesel production chain, reducing cost after process optimization.