Palm oil (PO) is an important source of livelihood, but unsustainable practices and widespread consumption may threaten human and planetary health. We reviewed 234 articles and summarized evidence on the impact of PO on health, social and economic aspects, environment, and biodiversity in the Malaysian context, and discuss mitigation strategies based on the sustainable development goals (SDGs). The evidence on health impact of PO is equivocal, with knowledge gaps on whether moderate consumption elevates risk for chronic diseases, but the benefits of phytonutrients (SDG2) and sensory characteristics of PO seem offset by its high proportion of saturated fat (SDG3). While PO contributes to economic growth (SDG9, 12), poverty alleviation (SDG1, 8, 10), enhanced food security (SDG2), alternative energy (SDG9), and long-term employment opportunities (SDG1), human rights issues and inequities attributed to PO production persist (SDG8). Environmental impacts arise through large-scale expansion of monoculture plantations associated with increased greenhouse gas emissions (SDG13), especially from converted carbon-rich peat lands, which can cause forest fires and annual trans-boundary haze; changes in microclimate properties and soil nutrient content (SDG6, 13); increased sedimentation and change of hydrological properties of streams near slopes (SDG6); and increased human wildlife conflicts, increase of invasive species occurrence, and reduced biodiversity (SDG14, 15). Practices such as biological pest control, circular waste management, multi-cropping and certification may mitigate negative impacts on environmental SDGs, without hampering progress of socioeconomic SDGs. While strategies focusing on improving practices within and surrounding plantations offer co-benefits for socioeconomic, environment and biodiversity-related SDGs, several challenges in achieving scalable solutions must be addressed to ensure holistic sustainability of PO in Malaysia for various stakeholders.