Agarwood (Aquilaria malaccensis) is a plant species native to Southeast Asia that is best known for its oil essence. In this chapter, we'll look at using its oil to make biodiesel. To further clarify the picture, a number of steps would be carried out, beginning with the extraction of the oil and ending with its categorization. The “supercritical fluid extraction” approach is used in the extraction process. Later in this process the oil would be used as a source for extraction of Fatty Acid Methyl Ester. The characterization of the methyl ester would be specifically based on density, specific gravity, Flash point, carbon residue.