Response surface methodology was used to design and evaluate the experimental variables for Pd-B/γ-Al2O3 catalyst preparation. The catalyst was prepared by impregnation and chemical reduction. Thirteen different samples of the catalyst were prepared at different KOH concentrations and annealed at various temperatures, before applying them in palm oil hydrogenation. Hydrogenation was performed on a 0.12% Pd-B/γ-Al2O3 catalyst at a temperature of 393 K, hydrogen pressure of 500 kPa and agitation of 500 rpm for 1 h. The iodine value (IV) and trans fatty acids (TFAs) content responses were measured for each hydrogenated palm oil sample. The predicted models were verified for both responses and found to be statistically adequate. An optimization study was performed on the catalyst preparation variables for minimizing both IV and TFAs content. The Pd-B/γ-Al2O3 prepared under optimized conditions exhibited 47% higher conversion and 22% lower trans-isomerization selectivity than Escat 1241 commercial catalyst. The Pd-B/γ-Al2O3 catalyst preparation variables have a noticeable effect on palm oil hydrogenation conversion and trans-isomerization selectivity.