Esterquats or cationic surfactants are increasingly used because of their fabrics softening effect and excellent biodegradability. Esterquats production is a two-stage process involving esterification and quaternization. Esteramines, an intermediate for the production of esterquats is produced by esterifying of palm-based fatty acid and triethanolamine in the presence of hypophosphorus acid of 50% purity. The esterificarion variables, and colour of esteramines produced. Vaccum and temperature had a profound impact on the esterification process. A vaccum of a least 40 mbar was required for the formation of a light-colour esteramines. The reaction time was shortened from 9 hr to approximately 4 hr when the reactor temperature was increased from 160°C to 180°C. Improved colour of the estramine was also obeserved with the higher temperature effect. However, mixing intensity only had minimal effect on both the esterification rate and colour of the esteramines.