Plant dietary lipids remain one of the most intriguing and complex classes of biological molecules. Among them, medium-chain triglycerides (MCTs) have garnered recognition for their unique physico-chemical properties and potential health benefits. Despite their classification as saturated fats, they stand apart from other saturated fatty acids due to their distinctive characteristics, positioning them as a valuable component in nutrition. While traditional dietary fats primarily contain long-chain triglycerides (LCTs), MCTs consist of medium-chain fatty acids (MCFAs), naturally found in coconut and palm oils. The structural dissimilarity grants MCTs advantageous attributes, encompassing rapid digestion and absorption, providing a swift source of energy. Importantly, MCT oil derived from coconuts surpasses traditional coconut oil in efficiency and speed of energy conversion due to its higher concentration of readily metabolizable MCTs, making it a superior choice in human nutrition. This comprehensive study delves deeply into the potential of coconut-derived MCT oil, illuminating its chemical constituents, production from coconut oil, distinctive physical and chemical properties, and metabolic characteristics. Additionally, it highlights a range of potential biological activities of the oil, including its efficacy in managing gastrointestinal disorders and promising roles in anticancer, neuroprotective, and antimicrobial effects. The report also discusses the extensive applications of MCT oil across diverse industrial and technological sectors, as well as its utilization in structured lipids, oleogels, and as a carrier for capsaicin. Addressing safety concerns and providing dosage guidelines, this paper emphasizes MCT oil as an alternative to coconut oil in various applications, offering a holistic perspective on its benefits.