Study of chitosan modification to MgAl-LDH to increase surface basicity for improving biodiesel production from palm oil has been performed. Modification was conducted by chitosan gel impregnation onto prepared MgAl-LDH. Furthermore, the physicochemical character of material was evaluated by X-ray diffraction (XRD), scanning electron microscope, transmission electron microscope, gas sorption analysis, and determination of solid basicity. The XRD, specific surface area, pore distribution, and TEM analyses confirmed the reduced specific surface area due to the exfoliated LDH conformation. However, the increased surface basicity aroused from the modification leads to improved catalytic activity and yield. The maximum biodiesel yield of 92.8 % was achieved by the methanol to oil ratio of 10:1 at 90oC for 2h. The prominent reusability until the 5th cycle of usage without significant activity change is a potency for advocating the suitability of the low-cost catalysis technology for commercial biodiesel production.