Smallholders are one of the main contributors to the palm oil industry in Malaysia. To improve the capacity and well-being of smallholders, numerous projects, and policies were put into place. However, there is still a dearth of clear evidence and linkages between smallholders’ capacity, perceived capability, and the Sustainable Development Goals (SDGs). This study intends to investigate the capacity, perceived capability, and SDG attainment of the existing smallholders, as well as the relationships between these three variables. Secondary data, field visits, interviews, and quantitative surveys had all been used to meet the research’s goals. Utilizing clustered purposive sampling with three criteria in mind: smallholders’ organization, partnership, and certification, primary data were gathered from 420 respondents from both organized and independent smallholders, including 215 samples from Perak and 205 from Kedah, Malaysia. Additionally, primary data was gathered from the Malaysian Palm Oil Board (MPOB), state economic reports, and the annual report of Federal Land Development Authority (FELDA). The findings contain smallholders’ baseline data, pertinent SDGs achievement and survey results on smallholders’ perceived capability and capacity. Organised smallholders are, on average, accomplishing the SDGs at a better rate despite some challenges and limitations. The results for the SDG indicators also showed a disparity, particularly in the areas of education, responsible production and consumption, life on land, and the eradication of poverty. The perceptions of capability, capacity, and revenue creation between the two groups of smallholders showed slight differences.