The invention relates to a biodegradable functional fluid composition
based on vegetable oil. This functional fluid suitable for lubricant,
hydraulic and like fluid comprises palm olein and its by-product
generated from fractionation of palm oil. The by-product is esterified by
a hindered alcohol prior to blend together with palm olein and additive
packages. The hydraulic fluid particularly suited for tropical climate
with temperature ranging from 15-40.degree. C.
