The aim of this study was to evaluate whether pretreatment of palm kernel meal (PKM) with a commercial feed enzyme (Allzyme Vegpro ) or solid-state fermentation of PKM with the cellulolytic fungus Trichoderma koningii (Oudemans) could improve the nutritive value of raw PKM in the diets of red hybrid tilapia, Oreochromis sp. Seven isonitrogenous (30% crude protein) and isoenergetic (15.1 kJ g À1 ) practical diets were formulated and fed close to apparent satiation to triplicate groups of 14 fish (mean initial weight 5.1 + 0.1 g) for 10 weeks. The diets consisted of a control diet which did not contain any PKM, raw PKM diets, enzyme-treated PKM (EPKM) or fermented PKM (FPKM) diets at 20% and 40% (dry weight basis) inclusion rates. The growth performance and feed utilization efficiency of tilapia fed 20% PKM or 20% EPKM were not significantly different (P > 0.05) from those of fish fed the control diet. Fish fed diets containing 40% EPKM showed significantly higher growth and feed utilization efficiency than fish fed 40% raw PKM owing to the improved dry matter, protein, lipid and energy digestibility of the enzymetreated PKM diets. The apparent protein and lipid digestibility of the 20% EPKM and 40% EPKM diets were not significantly different, and nor was the growth and feed utilization efficiency of fish fed these two diets. Hybrid tilapia fed FPKM-based diets at all dietary inclusions tested showed the poorest growth, and this might indicate the presence of antinutrients in the resultant fungal biomass. In conclusion, it is anticipated that, with further optimization of enzyme pretreatment of PKM, higher levels of PKM could be included in the diets of hybrid tilapia, thereby reducing the impact of rising costs to feed tilapia.