The ain of the present paper describes about the bio-oil extraction using soxhlet and supercritical CO2 process. The percentage yield 82.34 % was more in the case of supercritical CO2 extraction. The extracted bio-oil was converted into biodiesel using enzymatic trans-esterification reaction. A novel catalyst Gum arabic coated magnetic Fe3O4 nanoparticles are used in the enzymatic trans-esterification reaction. The extracted bio-oil and produced bio-diesel samples were characterised using GC-MS spectral data. Similarly, physical properties such as density, flash point, kinematic viscosity, cloud point and pour point were found out for Jatropha oil and Jatropha methyl ester. The values obtained from the Jatropha methyl ester is closely matched with the values of conventional diesel and can be used in the existing diesel engine without any modification.