The study focused on the economic analysis of palm fruit processing among rural farmers in Ezeagu Local Government Area of Enugu State, Nigeria. Specifically, it described the socio-economic characteristics of palm oil processors, identified processing methods, estimated costs and returns, determined factors influencing output, and examined constraints. A multi-stage stratified random sampling technique was used to select 60 respondents. Data were collected with structured questionnaires and analyzed using descriptive statistics (frequency, percentage, mean, and gross margin model) and inferential tools such as regression and Z-test models. Results showed that 35% of producers used mechanized technologies while 65% used traditional methods. The benefit–cost ratio was 1.30 for traditional processing and 11.8 for modern methods. Regression results indicated that age (-0.773*), education (1.149***), household size (0.068***), farming experience (0.089***), income (0.113***), and access to credit (0.228***) significantly influenced palm oil processing. Major constraints were lack of electricity (100%), non-availability of palm fruit (93.3%), lack of government support (93.3%), inadequate credit (86.7%), and insufficient land (85%). The Z-test revealed a significant income difference between modern and traditional methods. The study concludes that modern processing is more profitable and recommends stronger extension services to enhance farmers’ adoption.