The present study examines the performance of HZSM-5 catalysts during the catalytic cracking of palm oil to produce biofuel. Effects of nitrogen flow rate and reaction temperature during the catalytic cracking of palm oil to produce biofuel were also 1 studied. From this current research it is expected that the value-added of vegetable oil can be enhanced by producing biofuel. Biofuel is renewable fuel, thus with its unlimited resource the fossil fuel shortage may be overcome by replacing the usage of fossil fuel with this renewable biofuel. During the utilisation, biofuel produces fewer pollutants than fossil fuel; therefore biofuel is safer and environmentally friendly fuel.