The preparation of a Li-doped MgO for biodiesel synthesis has been investigated by optimizing the catalyst composition and calcination temperatures. The results show that the formation of strong base sites is particularly promoted by the addition of Li, thus resulting in an increase of the biodiesel synthesis. The catalyst with the Li/Mg molar ratio of 0.08 and calcination temperature of 823 K exhibits the best performance. The biodiesel conversion decreases with further increasing Li/Mg molar ratio above 0.08, which is most likely attributed to the separated lithium hydroxide formed by excess Li ions and a concomitant decrease of BET values. In addition, the effects of methanol/oil molar ratio, reaction time, catalyst amount, and catalyst stability were also investigated for the optimized Li-doped MgO. The metal leaching from the Li-doped MgO catalysts was detected, indicating more studies are needed to stabilize the catalysts for its application in the large-scale biodiesel production facilities.