Biodiesel is a clean burning alternative fuel, produced from domestic, renewable resources. Biodiesel contains no petroleum, but it consisting of short chain alkyl esters, made by transesterification of vegetable oil or animal fat, which can be used in unmodified diesel-engine vehicles. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics. The conventional process for biodiesel production by transesterification is still expensive. The combination of reactor with distillation column in only one unit called reactive distillation column (RD) may lead to an enormous reduction of capital and investment costs. This research is proposed the feasibility study of biodiesel production from palm oil by reactive distillation. The hypothesis is to reduce the amount of alcohol in the feed stream close to its stoichiometric ratio with oil. This also causes the less energy for the process. The effects of process parameters, including feeding methanol to oil ratio, operating temperature of reboiler and reaction time were conducted on a pilot scale of RD packed column. Preliminary results showed that process parameters of methanol to oil ratio of 4:1 (molar) and a reboiler temperature 100 degree celcius produced a methyl ester that was 89.26 %(wt) in 5 minutes. It can be concluded that the RD process more than efficient and feasible for the production of biodiesel from palm oil.