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The oil palm (Elaeis guineensis Jacq.) represents Indonesian major agriculture crop, nevertheless, its cultivation and processing results in an excessive amount of waste biomass, namely, empty fruit bunches (EFB), which is not always properly processed or reused. Therefore, the present investigation was performed to attract wide public interest in proper waste management and reuse of waste biomass. The suitability of such waste biomass for bio-pellet fuel production within its ecological EFB reuse was the subject of investigation. Its fuel parameters, mechanical quality and microscopic analysis represented the set of experimental testing performed within the target purpose. Satisfactory result values were stated within oil palm EFB fuel parameters, namely, moisture content Mc—7.07%, ash content Ac—9.41% and energy potential NCV—15.06 MJ∙kg−1. Mechanical analysis of the produced bio-pellet fuel proved outstanding results: Volume density ρ—1440.01 kg∙m−3 and mechanical durability DU—97.4% and 99.4% (according to ÖNORM M 7135 (2003) and ISO 17831-1 (2015)). Furthermore, results of compressive strength σ proved the requested high level; in simple pressure σp—10.83 MPa and in cleft σc—60.46 N·mm−1. Stereoscopic microscope measurements proved a prevalent proportion of fiber >97% within the feedstock content, and scanning electron microscopy (SEM) of bio-pellet samples diagnosed cracks purely on the outer surface, not within their internal structures, which indicated high quality compacted products. In conclusion, the overall evaluation indicates the production of environmental-friendly high quality bio-pellet fuel, thus, proving the suitability of oil palm EFB for the production of bio-pellet fuel.