Abstract: Disclosed are a reaction and separation processor and a process for producing biodiesel. The processor is comprised of a stationary casing and a rotor located internal to the casing, with a gap formed between the rotor and casing. A fluid inlet port is located at the upper end of the casing for delivering fluid, which is used to produce the biodiesel, into the reaction zone of the processor, in which the reaction zone is defined as a gap between an upper portion of the rotor and casing. Surface irregularities for inducing fluid turbulence in the reaction zone are located on an inner surface of the casing, an outer surface of the rotor, or both. A rotor inlet port is located at a lower end of the rotor for directing fluid from the reaction zone into the separation zone, which is located within the rotor.