With the increasing global demand for sustainable energy, biodiesel is becoming a crucial alternative to fossil fuels. However, not all biodiesel feedstocks have the same environmental and energy impacts, making it essential to identify the most sustainable options. This study uses life cycle assessment (LCA) using the IMPACT World + (midpoint and endpoint) method within a cradle-to-gate system boundary to compare the environmental and energy impacts of producing biodiesel from palm stearin and compared with the advanced biodiesel produced from microalgae. The findings reveal that palm stearin generally has a lower environmental footprint, especially in terms of human health and ecosystem quality, with reduced impacts in areas like freshwater ecotoxicity and particulate matter formation. On the other hand, while microalgae draws from a broader range of renewable energy sources, they consume more energy overall, particularly from nonrenewable sources. This study highlights the value of LCA in providing a detailed understanding of the environmental impacts of biodiesel production, helping stakeholders make informed decisions, and advancing more sustainable energy solutions.