A fixed bed pyrolysis system has been designed and constructed for obtaining liquid fuel from palm kernel shell. The major components of the system are: fixed bed reactor and condensate unit. The palm kernel shell in particle form was pyrolized in an externally heated 90mm diameter and 360mm high fixed bed reactor. The reactor is heated by means of a rectangular shape manual forge blower with charcoal as the energy source. The products are char, oil and gas. The parameters varied are feed particle size, reactor bed temperature and running time. The reactor bed temperature was found to influence the product yields. The maximum liquid yield was 38.67wt % at 4500C for a feed particle size of 1.18mm with a running time of 95minutes. The maximum char yield was 70.67wt% at 5500C for a feed particle size of 5mm with a running time of 120minutes. The calorific value of the palm kernel shells (22.81 MJkg-1) and bio-oil (43.19MJkg-1) were determined. The reactor efficiency was evaluated at various temperatures. Maximum efficiency of 73.21% indicated that the reactor is efficient enough to produce bio-oil. The bio-oil products were analysed by Fourier Transform Infra-red Spectroscopy (FTIR) and Gas Chromatography Mass Spectrometry (GCMS). The FTIR analysis showed that the bio-oil was dominated by phenol and its derivatives. The phenol, 2-methoxy-phenol and 2, 6- dimethoxyl phenol that were identified by GCMS analysis are highly suitable for extraction from bio-oil as value-added chemicals. The highly oxygenated oils need to be upgraded in order to be used in other applications such as transportation fuels