A process for paraffin alkylation of isoalkane with isoolefins in which an olefin component comprising oligomerized propylene, oligomerized isoolefin or mixtures thereof is fed to a paraffin alkylation unit wherein the dissociated olefin components forming the oligomers react with isoalkane to produce a reaction mixture containing an alkylate and unreacted isoalkane The reaction mixture is fractionally distilled to recover unreacted isoalkane as overheads and alkylate as bottoms. The stoichiometry of isoolefins to isoalkane in the alkylation unit is maintained by adjustment of the feed to the oligomerization, for example, by adding fresh isoalkane to the recovered, unreacted isoalkane from the alkylation unit being recycled to the oligomerization. Alternatively, a portion of the recovered unreacted isoalkane is dehydrogenation to an isoolefin which is added to the oligomerization.