This　work　studied　the　flow　pattern　and　reaction　kinetics　for　fatty　acid　methyl　ester　(FAME)　synthesis　through　transesterification　of　palm　oil　with　methanol　in　a　microchannel　reactor.　It　was　observed　in　the　experiments　using　a　high-speed　camera　that　the　flow　pattern　evolved　along　the　microchannels　due　to　the　coalescence　of　adjacent　droplets.　This　coalescence　phenomenon　had　significant　effects　on　the　variation　trend　of　FAME　yield　along　the　microchannels.　The　influences　of　catalyst　concentration,　reaction　temperature,　and　reactant　molar　ratio　on　the　flow　pattern　were　systematically　investigated.　It　was　the　first　successful　attempt　to　determine　the　kinetics　data　for　the　transesterification　of　palm　oil　with　methanol　in　the　first　120　s,　owing　to　the　use　of　microchannel　reactors.　A　pseudo-homogeneous　model　was　used　to　describe　the　reaction　kinetics　of　FAME　synthesis　in　microchannels.　This　model　performed　well　at　the　condition　that　the　reaction　equilibrium　was　reached　before　the　occurrence　of　droplet　coalescence.