Palm biodiesel from crude palm oil (CPO) was prepared via transesterification in a two-stage process using acidic ionic liquid as first step catalyst as opposed to using directly the alkaline-catalyzed transesterification which was found to be unsuitable. The esterification of the free fatty acids (FFA) of the CPO was carried out using triethylammonium hydrogensulfate (Et 3NHSO 4) as the pre-catalyst in the first stage, in which the acid value was reduced from 6.98 to 1.24mgKOH/g of oil followed by the use of KOH-catalyzed transesterification in the second stage. The effects of molar ratio of methanol to crude palm oil feed, the amount of ionic liquid and the reaction temperature were evaluated for the percent conversion of FFA. The conversion rate of FFA attained was 82.1 when 5.2wt. of Et 3NHSO 4 was used for the reaction of methanol with CPO at a ratio of 15:1 respectively, and at reaction temperature of 170°C for 3h. The second alkali-catalyze step was performed under agitation with stirrer speed of 600rpm at 60°C using 1.0 KOH for 50min. The final biodiesel product was analyzed using gas chromatography (GC) with a reaction yield of 96.9. The density, kinematic viscosity, acid value, ester content and other properties of the biodiesel sample were also measured and compared to the ASTM and the European biodiesel specifications. © 2012 Elsevier B.V.