Today, new energy sources alternative to fossil fuels are needed to meet the increasing energy demand. It is becoming increasingly important to constitute new energy sources from waste biomass through the liquefaction process. In this study, walnut shells (WS) were liquefied catalytically and non-catalytically under different parameters using the liquefaction method. In this process, the effect of silica fume/nano zero-valent iron (SF/NZVI) catalysts on the conversion rates was investigated. The catalyst was synthesized by reducing NZVI using a liquid phase chemical reduction method on SF. The SF/NZVI catalyst was characterized by scanning electron microscopy- energy dispersive X-ray (SEM–EDX), transmission electron microscope (TEM), Brunauer–Emmett–Teller (BET), Fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), and X-ray photoelectron spectroscopy (XPS) analysis. The effect of various process parameters on the liquefaction process was investigated. In this context, the reaction temperature ranged from 300 to 400 °C, the solid/solvent ratio ranged from 1/1 to 1/3, the reaction time ranged from 30 to 90 min, and the catalyst concentration ranged from 1 to 6%. According to the results obtained, the most suitable operating conditions for non-catalytic experiments in liquefaction of WS were found to be temperature of 400 °C, reaction time of 60 min, and solid/solvent of 1/3. In catalytic conditions, the optimum values were obtained as temperature of 375 °C, reaction time of 60 min, solid/solvent ratio of 1/3, and catalyst concentration of 6%. The highest total conversion and (oil + gas) % conversion were 90.4% and 46.7% under non-catalytic conditions and 90.7% and 62.3% under catalytic conditions, respectively. Gas chromatography/mass spectrometry (GC/MS) analysis revealed the bio-oil was mainly composed of aromatic compounds (benzene, butyl-, indane and their derivatives,) and polyaromatic compounds (naphthalene, decahydro-, cis-, naphthalene, 1-methyl-.). The aim of increasing the quantity and quality of the light liquid product in the study has been achieved.