The transesterification of crude palm oil and palm stearin with ethanol was carried out in a batch reactor by using sodium hydroxide as a catalyst. The major variables investigated were: molar ratio of ethanol/oil, amount of catalyst, reaction temperature and reaction time. The optimal condition to transesterify crude palm oil and palm stearin were similar as follows : 12:1 molar ratio of ethanol/oil, 75 ํC of reaction temperature, 1% weight of sodium hydroxide and 60 minute reaction time. At this condition, the ethyl ester conversion of crude palm oil and palm stearin were 87.79 and 94.42 % weight respectively. The characteristics of ethyl esters from both crude palm oil and palm stearin were similar to low speed diesel.