Global vegetable oil production is a crucial ingredient for food and household products but also a major source of greenhouse gas (GHG) emissions and other environmental externalities. A diversified supply may improve sustainability and resilience of profitable vegetable oil production globally. Here, we provide the first spatial assessment of the environmental and economic effects of major vegetable oil crops soybean, palm, rapeseed, sunflower, groundnut, and olive globally, based on new data from a meta-analysis and life cycle assessment. We show that diversified vegetable oil production through a highly productive oil tree cropCamellia oleiferacan reduce GHG emissions, water use, land use, and pesticide use by 14.0%, 4.9%, 7.3%, 9.3%, respectively and increase farmer income by 82.6%. When considering enabling conditions for technology and policy support, these benefits increase 1.3, 2.1, 1.8, 1.7, and 3.2 folds, respectively. Our results provide practical guidance where and how diversified oil crop production can advance a sustainable food system transformation and help to mitigate climate change.