Agriculture residues such as palmyra fruit bunch are one of the biomass categories that can be utilized for conversion to bio-oil by using pyrolysis process. Flash pyrolysis experiments have been conducted in the electrically heated fluidized bed reactor to determine the effect of pyrolysis temperature, particle size, and sweep gas flow rate on the pyrolysis product yield. In this study the maximum oil yield of 48.2% was achieved at a temperature of 500 degrees C, particle size of 1 mm, and at a sweep gas flow rate of 2 m(3)/h. The results show that the effects of pyrolysis temperature and particle size on pyrolysis yields are more significant than that of sweep gas flow rate. Bio-oil was identified as a biofuel candidate and it was further upgraded for better-quality biofuel. Various physical and elemental analyses were performed for bio-oil and the same characteristics study was also carried out for biofuel.