Substantial quantities of senile coconut palms are present in plantations within the Asia-Pacific region. Once coconut palms become over-mature, their production of traditional products, such as coconuts, significantly decreases, resulting in profitability challenges for farmers. Presently, few profitable markets exist for over-mature, senile coconut palms. Using the coconut palm stem in composite or engineered wood products could, however, provide an attractive alternative. Due to some of its unique characteristics, a processing system able to recover wood from the highdensity zone near the stem periphery is desirable. A series of rotary veneer laboratory trials were undertaken to establish fundamental benchmark lathe settings and veneering characteristics for coconut palm stems. Different pressure bar configurations, billet pre-treatment temperatures, and veneer thicknesses were tested, and the resulting cutting forces and veneer quality were assessed. Optimal setting recommendations for peeling coconut wood are provided.