The paper finds that with increasing fuel demand projected for the Greater Mekong Subregion (GMS), biofuels could make a significant contribution to offsetting oil demand and to increased agricultural and rural incomes, though the overall benefits to the region's population depends largely on how risks to food security are managed and on the production system that is adopted. Using examples from within the GMS, the paper illustrates that expansion involving smallholder-based production on surplus land, and an emphasis on non-food crops and second-generation biofuels, could pave the way for sustainable utilization of biofuels in the GMS.