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Solid-state fermentation with Yarrowia lipolytica was applied to palm kernels (PK) with the aim to modulate the aroma of palm kernel oil (PKO) obtained after kernel roasting. The results showed that, the metabolic activities of Y. lipolityca brought about significant changes to the volatile profile of obtained PKO either by providing thermal reaction reactants or by directly contributing aroma compounds. After fermentation, a decreased content in glucose (60%) while an elevated amount (7-fold) in free amino acids was found in PK, which further impacted the formation of volatile compounds by influencing the Maillard reaction and Strecker degradation during roasting. More Strecker aldehydes and N-heterocyclic compounds were formed in PKO derived from fermented PK especially after intensified roasting. In addition, the catabolism of Y. lipolytica imparted some distinct volatile compounds such as 2-phenylethanol to the obtained PKO. However, the lipase excreted by Y. lipolytica hydrolysed PK lipids and released 5-fold more free fatty acids in fermented PKO, relative to the blank and control PKO, which likely contributed to the off-flavor. On the basis of all volatile categories, principal component analysis (PCA) clearly separated the fermented PKO from the blank and control PKO, with light roasted, fermented PKO being correlated with acids, alcohols and aliphatic aldehydes; medium and dark roasted, fermented PKO tending to be dominated by pyrroles, pyrazines and furanones, which is in correspondence with sensory changes of PKO. This study demonstrated that combining fermentation with roasting could provide a novel way to modulate the volatile composition and aroma of PKO.