Biodiesel is a renewable fuel produced from vegetable oils and animal fats that could contribute to the reduction of the United States' dependency on foreign oil. Soybean oil remains the most common biodiesel feedstock in the U.S. due to its supply infrastructure and quality. Conventionally, soybean oil is extracted from the bean prior to transesterification using hexane or a press. In-situ transesterification of soybeans simultaneously combines the steps of lipid (oil) extraction and transesterification to produce biodiesel. Integration of these stages could reduce biodiesel production cost. Parameters such as reaction time, temperature, type of catalyst, concentration of catalyst, and surface area of the soybean were investigated to optimize the process of in-situ transesterification of soybean. The reaction kinetics of in-situ transesterification were compared to the conventional two stage process.