Vegetable oil and animal fat derived fatty acid methyl esters are commonly known as biodiesel and provide an environment friendly and renewable substitute for the conventional diesel fuel. The present work demonstrates an easy preparation of potassium ion impregnated calcium oxide in nano crystalline form (supported by powder X-ray diffraction and transmission electron microscopic studies) and its application as a solid catalyst for the transesterification of waste cottonseed oil with methanol. The catalyst prepared by impregnating 3.5 wt% of potassium in CaO support was found to show the best catalytic activity among the prepared catalysts. The same catalyst was found to be effective for the complete transesterification of less expensive feedstock, waste cotton seed oil, even in the presence of 10.26 wt% moisture and 4.35 wt% free fatty acid contents. The selected catalyst has also been reused successfully for three catalytic cycles. Few physicochemical properties of the prepared biodiesel sample have been studied and found to be within the acceptable limits of EN 14214 standards.