Biodiesel production from palm oil and hydrated ethanol in a fixed bed reactor using CaO/Al 2 O 3 as the catalyst was investigated and optimized using response surface methodology. The investigated parameters were temperature, pressure, ethanol/palm oil molar ratio, residence time and total mass flow rate. The approach was divided into two parts, a preliminary study using broad scale changes over a reasonable range of the above operating parameters and then, using this data to select a narrower range, a finer scale study to optimize the selected narrower operating parameters from the preliminary study. The resultant biodiesel obtained under the optimal conditions (285 °C, 20 MPa, 30:1 ethanol/oil molar ratio, 2 g/min flow rate and 4.85 min residence time) was measured for 11 fuel properties following the International Biodiesel Standard (EN14214), and was found to comply with this International Standard.