Essential oils have increasing importance in flavour and fragrance industries. They are obtained by distillation techniques. In order to produce an oil with market potential its optimum production parameters have to be well known prior to its commercial production. Determination of the steam distillation parameters of commercially available Laurel leaves oil in pilot plant scale is described. The effect of steam rate and processing time play a major role in distillation of essential oils. Distillation speed was high in the beginning of the process, then gradually reduced as the distillation proceeded. The main component of the oil of Laurel leaf oil was 1,8-cineole accumulating significantly in the early fractions.