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The feasibility of using palm kernel cake and crude glycerol in liquefaction process to produce bio polyol was investigated in  this study. The identiied parameters for liquefaction conditions were reaction temperature, reaction time, biomass loading and  acid loading. The optimal liquefaction conditions for bio polyol production were determined to be 10%(w/w) biomass loading, 1%(w/w) acid loading, and reaction temperature at 160°C for 90min. The optimal condition yielded 83 % biomass conversion with hydroxyl and acid numbers of 552 mg KOH/g and 0.56 mg KOH/g respectively. Result shows that palm kernel cake and crude glycerol can be used as an alternative raw material and liquefaction solvent to the production of bio polyol.