Heterogeneous catalysts are promising for the transesterification reaction of vegetable oils to produce biodiesel and have been studied intensively over the last decade. Unlike the homogeneous catalysts, heterogeneous catalysts can be easily separated from reaction mixture and reused for many times. They are environmentally benign and could be easily operated in continuous processes. This review classifies the solid catalysts into two categories based on their catalytic temperature, i.e. high temperature catalysts and low temperature catalysts. The nature of the catalysts can be specified into solid bases and solid acids. Three aspects, catalyst activity, catalyst life and oil flexibility, will be reviewed. Two kinds of heterogeneous catalysts, reported by IFP Inc. and by WSU, respectively, show a high catalytic activity, long catalyst life and low leaching of catalyst components. These two catalysts also show ability to simultaneously catalyze esterification and transesterification, and can be used in half-refined or crude oil system which provide a potential for greatly decrease the feedstock cost.