Transesterification of waste fryer grease (WTG) containing 5-6 wt.% free fatty acid (FFA) was carried out with methanol, ethanol, and mixtures of methanol/ethanol maintaining the oil to alcohol molar ratio of 1:6, and initially with KOH as a catalyst. Mixtures of methanol and ethanol were used for transesterification in order to use the better solvent property of ethanol and rapid equilibrium using methanol. Formation of soap by reaction of FFA present in WFG with KOH instigated difficulty in the separation of glycerol from biodiesel ester. To untangle this problem, two-stage (acid and alkali catalyzed) method was used for biodiesel synthesis. More than 90% ester was obtained when two-stage method was used compared to similar to 50% ester in single stage alkaline catalyst. In the case of mixed alcohol, a relatively smaller amount of ethyl esters was formed along with methyl esters. Acid value, viscosity, and cetane number of all the esters prepared from WFG were within the range of the ASTM standard. Esters obtained from WFG showed good performance as a lubricity additive. Published by Elsevier B.V.