Palmitic acid is used in cosmetics as well as skin care products, and its extraction from plants remains major source of production. The conventional process of extraction is quite laborious and may lead to loss of plant diversity. Therefore, the current investigation aims at producing palmitic acid from coconut oilcake using probiotics isolated from marine fish. A total of 18 bacterial strains were isolated from Indian oil Sardine fish (Sardinella longiceps) and Obtuse barracuda fish (Sphyraena obtusata). Among various strains isolated, Mm12 strain was able to synthesize 60.57 mg/100mL fatty acids. The production of palmitic acid was optimized using RSM with the most appropriate values of the tested parameters by using Design-Expert 13 to resolve the correlation coefficients binomial equation’s reciprocal matrix as temperature 10°C, pH 5.5, and 40 g oil cake substrate. The highest quantity of palmitic acid that could be produced under ideal circumstances has been estimated to be 19.97 mg/100 mL which was confirmed by GC–MS fatty acid methyl ester (FAME) analysis. Production of palmitic acids from the oil cake was not only a novel method of valorizing industrial waste using probiotic bacteria and but also a promising method of producing palmitate using cheaper substrates.