The objective of the current report is process optimization for economical production of lipids by the well known oleaginous yeast Cryptococcus curvatus and conversion of the lipids to biodiesel. A high cell density fed-batch cultivation on low cost substrate viz, crude glycerol resulted in a dry biomass and oil yield of up to 69 g/L and 48% (w/w), respectively. The process was scaled up easily to 26 L The oil extraction process was also optimized using environmentally safe solvents. The oil profile indicated a high oleic acid content followed by palmitic acid, stearic acid and linoleic acid. The oil was trans-esterified to biodiesel and thoroughly characterized. This is the first end to end report on production of biodiesel from the C. curvatus oil. (C) 2011 Elsevier Ltd. All rights reserved.