High octane gasoline and high quality distillate are co-produced by a hydrocracking light cycle oil from a catalytic cracking process under conditions of low to moderate hydrogen pressure and severity to produce a high octane, hydrocracked gasoline. The distillate fraction from the hydrocracker is separated to form a first fraction which boils immediately above the gasoline fraction and a second, higher boiling fraction which is withdrawn as product. The first distillate fraction is recycled, preferably to extinction, to the cracker to increase the paraffinic content of the higher boiling distillate product by removal of the hydroaromatic components in the recycled fraction. The recycled fraction may be mixed with fresh feed to the cracker or may be injected at a higher level in the cracking riser as a secondary feed injection. The paraffinic distillate product has a low sulfur content and a high cetane index and is useful as a road diesel fuel.