Biodiesel was prepared from palm oil by transesterification with methanol in the presence of 1.5%K loaded-calcined Mg-Al hydrotalcite. Fatty acid methyl esters content of 96.9% and methyl ester yield of 86.6% were achieved using a 30:1 methanol to oil molar ratio at 100 degrees C for 6h and 7wt% catalyst. The biodiesel was characterized and its impact on elastomer properties was evaluated. The compatibility of 1310 diesel blend (10% biodiesel) with six types of elastomers commonly found in fuel systems (NBR, HNBR, NBR/PVC, acrylic rubber, co-polymer FKM, and terpolymer FKM) were investigated. The physical properties of elastomers after immersion in tested fuels (for 22, 670, and 1008 h at 100 degrees C) were measured according to American Society of Testing and Materials (ASTM). These include swelling (mass change and volume change), hardness, tensile and elongation, as well as the dynamic mechanical property. The results showed that properties of NBR, NBR/PVC and acrylic rubber were affected more than other elastomers. This is due to the absorption and dissolving of biodiesel by rubber in these samples. Co-polymer FKM and terpolymer FKM which are fluoroelastomers show little property change. (C) 2007 Elsevier Ltd. All rights reserved.