Epoxidized fatty hydrazides (EFHs) which have amine, amide and epoxide functional groups in their molecules are a versatile starting material for synthesizing of many industrially important compounds. In this report we describe the results of our preliminary study of synthesizing these compounds using a chemical reaction of epoxidized palm olein (EPO) and hydrazine monohydrate. The products were characterized by using Fourier transform infrared (FTIR) spectroscopy, nuclear magnetic resonance (NMR) technique and CHN elemental analyser. The optimum reaction conditions for the hydrazide preparation were investigated by studying effect of each important reaction parameters on the product yields. The study shows that the optimum conditions to produce EFHs were using EPO to hydrazine monohydrate (mol ratio of 1 to 12), n-hexane as the solvent and at the temperature of 69 ̊C.