Abstract To improve the quality of fast pyrolysis bio-oil, an efficient catalytic upgrading process is proposed with pristine Ni/MgO catalyst and ethanol. Esterification, hydrogenation, alkylation of aromatic ring and depolymerization of lignin-derived pyrolytic oligomers simultaneously occurred in the upgrading process. Esters, ketones and alkyl-substituted aromatic compounds were found to be the main components in the volatile fraction of the upgraded bio-oil. Under the optimal conditions, pH value and HHV (high heating value) of the upgraded bio-oil were 5.01 and 24.9 MJ kg −1 , respectively. This result suggested that the properties of bio-oil could be effectively improved by the catalytic upgrading process. Moreover, carbon efficiency of this upgrading process was relatively high because that formation of coke is suppressed in the upgrading process.