The growing concern and limitations for existing lubricants have driven the need for biolubricants, extensively proposed as the most suitable and sustainable lubricating oils. Biolubricant refers to lubricants that quickly biodegrade and are non-toxic to humans and aquatic habitats. Over the last decade, there has been a significant increase in the production of biolubricants due to the rising demand for replacing petroleum-based lubricants with those derived from renewable sources like vegetable oils and lipase that are used in various applications. In this study biodiesel (FAME) produced from blending animal fats and waste cooking was used as a raw material with ethylene glycol for biolubricant production using a transesterification reaction in the presence of calcium oxide which considers the newest and novel part as there is no production of biolubricant from animal fats and waste cooking oil in previous researches. The reaction parameters of biolubricant production were optimized using response surface methodology (RSM) with the aid of Box Behnken Design (BBD) to study the effect of independent variables on the yield of biolubricant. These variables are temperature ranging from (100–150 °C), reaction time ranging from 1 to 4 h, and FAME (Fatty Acid Methyl Ester) to alcohol molar ratio ranging from (2:1) to (4:1). The highest biolubricant yield is 91.56% at a temperature of 141 °C, a FAME/alcohol molar ratio of 2:1, and 3.3 h. Various analyses were performed on the produced biolubricant at the optimum conditions. The results include a pour point of -9 °C, a flash point of 192 °C, a kinematic viscosity at 40 °C of 10.35 cSt, a viscosity index of 183.6, an ash content of 0.76 wt.%, and a carbon residue of 1.5 wt.%, comparing favorably with the ISO VG 10 standard. The production process of biolubricant was simulated with Aspen Plus version 11 using a Non-Random Two-Liquid (NRTL) fluid package. The simulation results indicated that the production process can be applied on an industrial scale. Economic analysis was performed on the biolubricants production plant. The total capital investment was $12.7 M with a payback period of 1.48 years and an internal rate of return (IRR) of 67.5% indicating the suitability and profitability of the biolubricant production.