A method for converting crude tall oil into high quality diesel fuels include the steps of (a) removal of non-oil contaminants present in the crude tall oil and recovery of valuable organic, (b) heating and removing the volatile fractions of the refined tall oil stream from step (a) and forming a volatiles free oil stream comprising organic components with boiling points of 170° C. and higher, (c) vacuum distilling the volatiles free oil stream of from step (b) to produce a first and second stream the first stream including components with boiling points between 170-400° C. and the second stream comprising components having boiling points greater than 400° C. and (d) passing the first stream into a catalytic reactor wherein hydrogenation and deoxygenation take place to produce a diesel range fuel depleted in oxygen.