As modern transport has provided facilities to people's lives, it has triggered significant air pollution and oil depletion in the meanwhile. For the purpose of a sustainable social-economic development, biofuel is the most viable alternative to oil, as well as the best option. This paper summarizes research and practice development process of biofuel, with a focus on the application as motor fuel and aviation fuel. Also, proposed strategies and their significance about biofuel development in China are also presented in this study.