A transesterification reaction of waste cooking oils (WCO) with methanol in the presence of a potassium hydroxide catalyst was performed in a continuous ultrasonic reactor of low-frequency 20 kHz with input capacity of 1 kW, in a two-step process. For the first step, the transesterification was carried out with the molar ratio of methanol to WCO of 2.5:1, and the amount of catalyst 0.7 wt.%. The yield of fatty acid methyl esters (FAME) was about 81%. A yield of FAME of around 99% was attained in the second step with the molar ratio of methanol to initial WCO of 1.5:1, and the amount of catalyst 0.3 wt.%. The FAME yield was extremely high even at the short residence time of the reactants in the ultrasonic reactor (less than 1 min for the two steps) at ambient temperature, and the total amount of time required to produce bio-diesel was 15 h. The quality of the final biodiesel product meets the standards JIS K2390 and EN 14214 for biodiesel fuel. (C) 2010 Elsevier Ltd. All rights reserved.