Biodiesel or FAME is a renewable source of fuel which has the potential to substitute petroleum-based diesel. A two-step alkali-alkali transesterification method was used for the production of FAME from palm oil and waste palm cooking oil (WPCO) with KOH as a catalyst. The effects of total catalyst loading, reaction temperature and total oil to methanol molar ratio on reaction performance were investigated. Palm oil and WPCO showed similar trends during investigation for each parameter. Both palm oil and WPCO are feasible feedstock for FAME production by using the two-step alkali-alkali transesterification process.