The increasing demand for energy has encouraged the development of renewable resources and environmentally benign fuel such as biodiesel. In this study, ethyl fatty esters (EFEs), a major component of biodiesel fuel, were synthesized from soybean oil using sodium ethoxide as a catalyst. By-products were glycerol and difatty acyl urea (DFAU), which has biological characteristics, as antibiotics and antifungal medications. Both EFEs and DFAU have been characterized using Fourier transform infrared (FTIR) spectroscopy, and 1H nuclear magnetic resonance (NMR) technique. The optimum conditions were studied as a function of reaction time, reactant molar ratios, catalyst percentage and the effect of organic solvents. The conversion ratio of soybean oil into pure EFEs was 76% after 10 h of reaction. The highest conversion yield of EFEs is obtained when the urea/soybean oil ratio was from 6.2 mmol to 1 mmol, while the highest production of DFAU is obtained when the ethoxide (as a catalyst)/soybean oil ratio is from 6.4 mmol to 1 mmol in hexane as the reaction medium.