The growing of worldwide trend for promoting the use of the renewable material such as vegetable oil is due to the increasing concern about environmental damage that caused by the use of mineral oil which is not biodegradable. This article is present as a case study in highlighting the use of Palm Kernel Oil (PKO) as a bio lubricant in cold forging process. Ring Compression Test (RCT) plays a fundamental role in our understanding of materials science and engineering due to the deformation, friction and wear behaviour. Annealed Aluminium (AA6061) were used in this test to observe the formation of the ring with different sample test (NO-Oil, PKO and CMFOoil) at 10%, 20% 30% and 40% formation by comparing with finites element method (DEFORM-3D) to predict formation of the sample lubricants. The ring compression test conducted by this study indicates that the Tresca friction factor (m) is higher for Palm Kernel oil (0.35) compare to commercial metal forming oil (CMFO) (0.25), where higher load is needed under palm kernel oil test. Palm Kernel oil however has a better in surface protecting to the material where it shows that the roughness of the workpiece is lower compare to the CMFO, besides that the Wear scar observation also shows CMFO has a lot of wear on workpiece surface.