A two-stage esterification system for the production of biodiesel from palm fatty acid distillate (PFAD) has been developed using acid catalysts, i.e. sulphonic acids. The sulphonic acid catalysts have an excellent solubility property in water phase rendering easy phase separations and also can prevent the formation of undesirable by-products. The optimum reaction conditions for the first stage esterification process was achieved with 2:1 molar ratio of methanol to PFAD with 1.5 wt.% of acid catalyst, reacted for 90 min at temperature of 65°C. The optimum conditions for second stage esterification process enable the reduction of remaining free fatty acids (FFA) in PFAD to less than 2% with catalyst dosage of 1.0 wt.% under similar reaction conditions. The reaction product was then purified and subjected to transesterification process; 0.5 wt. % sodium hydroxide was used as catalyst at 65°C for 90 min. The fuel properties of PFAD biodiesel were found to comply with the European Biodiesel Standard, EN 14214:2008. Therefore, the developed process for production of biodiesel from low-priced feedstock PFAD is really applicable to actual biodiesel production with most competitive process due to its simplicity and excellent reaction yield.