In this paper the monosodium glutamate wastewater after diluted was well treated as a cheap fermentation broth for Rhodotorula glutinisto biosynthesize lipid as the raw material for the production of biodiesel. The optimum conditions were: the initial COD of inlet water was 10,000 mg/L, pH was 5.5, and the inoculum concentration of 12%. The flask treatment result indicated that the COD degradation ratio and the lipid content could reach (85.511.00%) and (9.040.11%), respectively.