The optimum conditions for the glycerolysis of palm stearin and crude glycerol derived from biodiesel process werefound to be a reaction temperature of 200oC with a molar ratio of crude glycerol to palm stearin of 2.5:1, and a reaction timeof 20 minutes. The yield and purity of monoglycerides obtained under these conditions was satisfactory as compared withthe glycerolysis of pure glycerol. To increase the purity of monoglycerides a two-step process, removal of residual glyceroland crystallization, was proposed instead of either vacuum or molecular distillation. Residual glycerol was removed byadding hydrochloric acid followed by washing with hot water. Optimum conditions for crystallization were achieved byusing isooctane as a solvent and a turbine impeller speed of 200 rpm at a crystallization temperature of 35oC. A purity notexceeding 99 percent of monoglycerides was obtained with monopalmitin as the major product.