This paper describes the effect of torrefaction on the characteristics of palm kernel shell (PKS) as a potential source of solid fuel. The torrefaction of PKS was investigated in a horizontal tubular reactor under nitrogen flow at a temperature ranging from 150 to 600 oC. The torrefied products were characterized in terms of their elemental composition, energy yield, ash content and volatile fraction. The gaseous products from torrefaction of PKS were also analyzed. The energy yield and mass yield were found to decrease with an increase in the torrefaction temperature while the higher heating value (HHV) increased.