AbstractProspects for modification of palm oil composition through oil palm breeding, tissue culture and enzyme‐catalyzed transesterification are reviewed. Present emphasis in oil modification is toward greater unsaturation. The greatest prospect for this area lies in the interspecific hybridization ofE. oleifera andE. guineensis. The target recommended is for a hybrid oil of iodine value above 72 having a palmitic acid content below 25% and an oleic acid content above 60%. It is noted that the variability of linoleic acid in the oil palm is limited regardless of species. The greatest contribution towards unsaturation, therefore, lies mainly in oleic acid. Tissue culture is seen as a potential propagating tool for selecting progenies of important crosses from the hybridization ofE. oleifera andE. guineensis, while enzyme‐catalyzed transesterification using a 1,3 specific lipase offers the possibility of enhancing the level of linoleic acid in palm oil. Besides breeding for unsaturation, production of palms giving oils of specific fatty acid or triglyceride types also may be possible ultimately.