Optimisation of reaction conditions for the esterification of geraniol of palmarosa oil with n-butyric acid using immobilized lipase from Mucor miehei in non-aqueous system was carried out. Palmarosa oil could be easily esterified upto 95% w/w at 40 degrees C in 24 h. Effect of moisture content was studied using Na2SO4 and recycling of the immobilized enzyme.