ABSTRACTUpgrading of bio-oil extracted from palm kernel shell (PKS) was performed using a lab-scale fixed-bed reactor with HZSM-5 as a catalyst. The catalytic cracking was carried out at optimized conditions: 0.3-MPa pressure, temperature of 500°C, and oil to catalyst ratio of 1:5. One of the challenges in upgrading bio-oil by catalytic cracking is deactivation of catalyst due to coke formation on catalyst surface. To overcome coke deposition, the upgrading process was carried out at 0.3-MPa pressure. Characterization of raw and upgraded bio-oil obtained through catalytic cracking was discussed in detail, indicating improvement in its physical properties. The distribution of products after cracking of bio-oil includes 58.89 wt% of organic liquid product, 15.63 wt% of aqueous fraction, 7.84 wt% of coke, and 17.64 wt% of gases. The degree of deoxygenation and calorific value of organic liquid product is 43.74% and 31.65 MJ/kg respectively. Organic liquid product obtained comprises 17.55% of hydrocarbons within the gasoline range. Hence, HZSM-5 proved its effectiveness for upgrading the bio-oil in a continuous mode.