In this study, KOH/bentonite catalysts, prepared by the impregnation method, were studied for transesterification in a continuous reactor. The catalysts were characterized using X-ray diffraction, Fourier transform infrared spectrophotometry, scanning electron microscopy, nitrogen adsorption/desorption, CO2 temperature programmed desorption, and X-ray fluorescence. The results showed that the addition of 20 wt% K on the bentonite catalyst at 60 degrees C reaction temperature, methanol/oil molar ratio of 15:1, and flow rate of 0.3 ml/min gave a biodiesel content exceeding 75%. With increasing basicity, the presence of K2O was observed, and the biodiesel content was improved. In addition, there was negligible loss in activity when the catalyst was operated at 60 degrees C for 7 days. A minimum level of potassium leaching on the 20 wt% K/bentonite was observed during the run.