In Malaysia, the area under and production of coconut have been declining steadily over the last two decades due to land use changes in favour of oil palm, rubber and other lucrative crops. Still, coconut enjoys a place of importance in the lives of thousands of small farmers. The average productiviity of coconut is also very low al about 3,000 nuts per ha. .Although Malaysia was one of the major exporters of ccconut oil before 1955. the country is presently a net importer. Senility of palms, poor cultural management and input use arc the major factors which inhibit coconut production. The country has now incorporated various development programmes in the Eight Malaysia Plan (2001-2006) to rehabilitate the existing coconut farms through the use of better planting materials, replanting of senile  and unproductive palms, integrated farming with or without livestock under coconut and also to stimulate the growth of industry through product diversification and by product utilization. The existing research gaps have been identified and remedial measures suggested.