Cationic surfactants play an important role in the formulation of fabric softeners by the efficiency of their softening and lubricating action upon the fabrics treated. Nowadays, esterquats which is a cationic surfactant are preferred over the traditional quats because of their excellent biodegradability. In line with the development in the detergent industry, MPOB has produced a palm-based esterquats which is a quaternized fatty acid triethanolamine (TEA) esters. The production of esterquat involves a two-stage process where esteramines is prepared in the first stage and quaternizing the esteramines subsequently in the second stage. The biodegradability of palm-based esterquats is comparable to that of tallow-based commercial esterquats. Furthermore, the properties of the palm-based esterquats produced are comparable to those of commercial tallow-based esterquats. Since palm-based esterquats is derived from vegetable origin and renewable sources, it is therefore more acceptable to many people than esterquats derived from animal origin because of the ‘halal’ issue. As an active ingredient for fabric softeners, two formulations (Palm Touch 1 and Palm Touch 2) containing this palm-based esterquats have been developed. The study conducted has shown that palm-based fabric softeners are stable upon storage, non-irritant to skin and biodegradable.