The precursor fibre should possess the required properties to be heat treated to form carbon fibres. The polyacrylonitrile (PAN) precursor fibre properties are hugely dependent on wet-spinning and post wet-spinning finishes. The temperature and stretch conditions affect the orientation and resultant mechanical properties. The spin finish oil applied gives an ease of operation and better performance. This article deals with establishing effects of major parameters like temperature, stretch and finish application to use certain PAN precursor for making carbon fibres, followed by some basic experimentation related to improvised formulation of spin finish oil for PAN precursor fibre.