Due to the world's current high dependence on petroleum-based products and their negative environmental impact, alternative and economically competitive products from renewable sources are desirable. Vegetable oils are a renewable source for the production of oleochemicals. In this work, a canola oil-based epoxy resin was produced and characterized, and proposed as an alternative to soybean oil-based epoxy resin. The canola resin was applied in the preparation of fiber-reinforced composites. The raw material cost of the canola resin was estimated and compared with soybean resin. Canola oil was epoxidized in a solvent-free process, with peracetic acid and a heterogeneous catalyst. Processing conditions which achieved a 98.5% conversion were a molar ratio of 1:0.5:2 unsaturation: acetic acid: hydrogen peroxide at 60°C with 25% catalyst. The canola resin was incorporated in the matrix of fiber-reinforced composites. The matrix was a blend of synthetic resin, canola resin (30, 35, and 40% wt of the total matrix), and a curing agent. More flexible but less strong composites were obtained as the initial content of canola resin increased. The raw material cost of canola resin may actually be less than soybean resin cost, when all raw materials and historic prices are considered.