Synthesis of bio-lubricant from palm oil mill effluent (POME) using enzymatic hydrolysis and non-catalytic esterification has been investigated in this article. The effects of essential parameters, which are temperature, pH, agitation speed, enzyme loading, ratio of oil to fatty acid and alcohol to fatty acid, on the reaction rate were examined. The optimum hydrolysis rate (0.1639mg/sec.L) was achieved at 40°C, pH 7.0, 650rpm, 20U/mL of enzyme loading and 50% (v/v) of POME. As for non-catalytic esterification, the highest reaction rate attained was 0.0018mg/sec.L at the operating conditions of 75°C, 950rpm, and alcohol to fatty acid ratio of 3:1. Viscosity and density of the produced bio-lubricant were also evaluated.