The coconut palm (Cocos nucifera L.) is a perennial, cross-pollinated, oil-bearing tropical forest tree. Recently, the demand for coconut goods has surged to 5 to 10 times its former value; however, coconut production is in jeopardy. Coconut senility is one of the most apparent factors that influence productivity. Adequate replanting is urgently required to maintain the growing demand for coconut products. However, coconut palm mass replanting might not be possible with traditional approaches. To overcome this snag, micropropagation via somatic embryogenesis (SE) has enormous potential for proficient clonal propagation in the coconut palm. During SE, the stimulation of cell proliferation, acquisition of embryogenic cell competence, and induction of somatic embryos undergo a series of developmental events. This phenomenon requires regulation in gene expression patterns and the activation of specific signaling pathways. This review summarizes gene regulatory mechanisms involved in the cell cycle, dedifferentiation, totipotency, embryo initiation, and meristem development during somatic embryo formation. Plant hormonal signal transduction is also highlighted during the formation of SE in coconut.