In this work, hydro-processing was used as an alternative route for producing bio-hydrogenated kerosene (BHK) from refined bleached deodorized palm oil (RPO) in the presence of a 0.5 wt% Pd/Al2O3 catalyst. The box-Behnken design was used to determine the effects of reaction temperature, H2 pressure, and reaction time in terms of liquid hourly space velocity (LHSV) on BHK production. The kerosene selectivity was used as the response for staticial interpretation. The results show that both temperature and LHSV produced significant effects, whereas H2 pressure did not. The optimal conditions were found to be 483 °C, 5.0 MPa, and 1.4 h–1 LHSV; these conditions provided approximately 57.30% kerosene selectivity and a 47.46% yield. The BHK product had a good heating value and flash point. However, the mass percentage of carbon and hydrogen was 99.1%, which is just below the minimum standard (99.5%), according to the carbon loss by the reaction pathway to form as CO and CO2. Water can be produced from the reaction induced by oxygen removal, which results in a high freezing point.