A continuous biodiesel production process from palm fatty acid distillate (PFAD) is simulated in Aspen Plus for process engineering aspects emphasizing the critical points in the entire process. The production process involves acid-catalyzed hydrolysis of residual glycerides of PFAD to additional free fatty acids (FFAs), followed by esterification of the FFAs with methanol for methyl ester production, biodiesel purification, and finally methanol recovery. A two-phase kinetic model was employed with detailed operating conditions for both, homogeneous and heterogeneous catalysts to design the reactors and critical process units. The operating costs of the process using both catalysts are evaluated.