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Abstract: Bimetallic Gold–silver core–shell nanoparticles (Au@Ag NPs) were synthesized at room temperature, where gold nanoparticles (AuNPs) served as seeds for continuous deposition of silver atoms on its surface. The core–shell structure was examined by UV–vis spectroscopy, transmission electron microscopy (TEM) and energy dispersive X-ray (EDX) analysis. The catalytic activity of these nanoparticles toward biodiesel production from Sunflower oil through transesterification was studied. The confirmation for biofuel synthesis was performed using Fourier Transform Infra-Red (FTIR) spectroscopy. Fuel properties are determined by standard ASTM (American society for Testing and Materials) protocols. Our observations show that at certain catalyst concentration, temperature and reaction time, highest yield of biodiesel (86.9%) is attained. The fuel properties of the synthesized biofuel are at par with standard biofuel. Further, the catalyst showed sustained activity for 3 cycles of transesterification. [Copyright &y& Elsevier]