Coconut research and extension have received adequate recognition in Papua New Guinea as the two-way strategy for achieving higher production and efficient product utilization. Production of quality planting material of coconut, varietal improvement through selection and breeding, better agronomic management and related areas have received research priority. Extension education and services are available to coconut farmers and processors to introduce improvements in farming and processing sectors. Altemative coconut production technology has been assigned importance under which a system approach is envisaged with coconut forming only one of the components of an integrated cropping/farming system. The feasibility of applying the principles of modified small holder- nucleus enterprise model in coconut industry is being examined. Likewise, the importance of organizing farmer's cooperatives for undertaking processing and marketing has been highlighted. Infrastructure development and lease, lease back system are important to rehabilitate rundown plantations and establish new ones to create a dependable production base for the future. Agriculture trade issues and credit facility issues are also to be addressed for developing a vibrant coconut industry.