Palm oil is widely used in various industries such as food, cosmetics, and biofuels. The lower production cost and higher yield offered by palm oil have made it a popular choice over other vegetable oils, leading to a 35-fold increase in global production from 2 million tonnes in 1970 to 71 million tonnes in 2018 (United States Department of Agriculture 2018). However, the unsustainable and environmentally damaging practices have led to deforestation and habitat loss in producing economies. In recent times, rising interest for palm oil has grabbed attention of all stakeholders including farmers, retailers, governments, international organizations, environmentalists, producers, and consumers. Globally, palm oil production is estimated around 73.8 million metric tons in 2021–22, of which Indonesia, Malaysia and Thailand are responsible for 59%, 25% and 4% of the world palm oil production respectively. The palm oil industry faces a range of environmental and social challenges, including deforestation, biodiversity loss, land conflicts, and labor abuses. Deforestation is a major concern, as oil palm plantations often replace tropical rainforests and other valuable ecosystems, leading to the loss of biodiversity and carbon sinks. In addition, the industry has been associated with human rights abuses, such as forced labor, child labor, and violations of indigenous peoples’ rights. While the Roundtable on Sustainable Palm Oil (RSPO) standard can help improve sustainability governance at the downstream level, challenges still exist for getting fully certified with RSPO. The paper is based on literature review, focused group discussion (FGD) and interviews conducted with multiple stakeholders in Thailand during the year 2021–2023. This study attempts to assess the current situation, key challenges, trends, and practices in palm oil farming in Thailand and highlight possible nature-based solutions and strategies for enhancing sustainable palm oil farming.