This study critically reviewed the prospects, feedstocks and challenges of biodiesel production from two non-edible oil sources, namely Beauty leaf oil (BLT) (Calophyllum inophyllum) and Castor oil (Ricinus communis). The recent developments and the lifecycle assessment (LCA) of these species such as their habitat, growth, oil content, free fatty acid profile and biodiesel characteristics are briefly discussed. Different oil extraction techniques and biodiesel conversion methods are also presented. The properties of the pure biodiesel and their blends are compared with petroleum diesel under different ASTM and European standards. Furthermore, the literatures on engine performance and emission studies using these biodiesels are reviewed and presented in tabular form. The review found that BLT oil can be catalytically transesterified to produce biodiesel as a potential alternative transport fuel in Australia. The review concludes that castor oil is not only an alternate fuel resource, but it also holds good lubricating properties and hence is a potential bio-lubricant source for internal combustion engines. Further research is needed on combustion, corrosion, tribo-corrosion, long term engine durability tests and tribological performance tests before recommending commercial scale biodiesel production from BLT oil and Castor oil.