The interesterification of palm oil in supercritical ethyl acetate (ETA) to produce fatty acid ethyl ester (FAEEs) or biofuel was conducted in a continuous tubular reactor. The density of the mixtures in the system was estimated using the Peng-Robinson equation of state process simulator, and the residence time was calculated. The effects of the reaction conditions, including the molar ratios of palm oil to ethyl acetate, the temperature, and the pressure, were investigated under various mass flow rates of the mixtures and optimized. The results showed that reaction temperatures above 653 K and long residence times affected the content of FAEEs and triacetin, a valuable by-product. The addition of water to the mixture in a 1:30:10 M ratio of palm oil to ethyl acetate to water at 653 K, 16 MPa, and a mixture mass flow rate of 1.5 g/min increased the total production of FAEEs and triacetin from 90.9 to 101.5 wt% in 42.4 min. The main finding of the present study is that triglyceride associated with ETA hydrolysis used to form acetic acid protected the products from decomposition at high temperatures and long residence times. The results will aid the selection of an efficient and economical process for alternative biofuel production from palm oil in supercritical ETA. (C) 2015 Elsevier Ltd. All rights reserved.