Biodiesel has provided an eco-friendly solution to fuel crisis, as it is renewable, biodegradable and a non-toxic fuel thatcan be easily produced through enzymatic transesterification of vegetable oils and animal fats. Enzymatic productionof biodiesel has many advantages over the conventional methods as high yields can be obtained at low reactiontemperatures with easy recovery of glycerol. Microbial lipases are powerful biocatalysts for industrial applicationsincluding biodiesel production at lower costs due to its potential in hydrolyzing waste industrial materials. Amongthem, lipases from yeasts, Candida antarctica, Candida rugosa, Cryptococcus sp., Trichosporon asahii and Yarrowia lipolyticaare known to catalyze such reactions. Moreover, stepwise addition of methanol in a three step, two step and single stepreactions have been developed using yeast lipases to minimize the inhibitory effects of methanol. The latest trendin biodiesel production is the use of whole-cell as biocatalysts, since the process requires no downstream processingof the enzyme. Synthesis of value added products from the byproduct glycerol further reduces the production costof biodiesel. This review aims at compiling the information on various yeast lipase catalyzed transesterificationreactions for greener production of biodiesel.