The effects were investigated of the palm sugar concentration (10-50 wt%) and mixing order of added sugar (before or after homogenization) on the physical properties of coconut milk (10 wt% fat). The fat droplet size, microstructure, viscosity and creaming index of coconut milk samples were determined after being pasteurized at 72°C for 20 min and then kept overnight. The results showed that the sugar concentration affected the physical properties of the coconut milk. An increase in the palm sugar concentration increased the fat droplet size and viscosity, while the creaming index decreased. The mixing order affected the coconut milk properties. The addition of palm sugar before homogenization resulted in higher stability of the coconut milk than from addition after homogenization. Overall, this study has important implications for the formulation and production of coconut milk products.