The oil palm is the largest plantation industry in Malaysia. It has been one of the major contributors to the country’s economy and the main pillar of the commodity sectors. For over 40 years, the oil palm industry has faced a lethal and incurable disease, Basal Stem Rot (BSR), which is caused by a type of bracket fungus, Ganoderma boninense. The oil palm physical symptoms infected by BSR disease are appearance of many unopened spears, flattening of crown and smaller crown size. Terrestrial Laser Scanning (TLS, also known as ground-based LiDAR) can be used to provide accurate and precise information on tree morphology with high resolution. This study proposed an image processing technique using the ground input data taken from a TLS. Five parameters were used in the study are number of laser hits in strata 200 cm and 850 cm from the top, namely as C200 and C850, respectively, crown area, frond number and frond angle. The objectives of this study are to analyse the relationship between the parameters and to study the relationship of the parameters with the levels of BSR disease. Results have shown that all parameters were significant in all levels of healthiness with p-values less than 5%. Frond number and frond angle showed the highest correlation value, which is equal to -0.94. Frond angle is increasing, while frond number and crown area are decreasing concurrently with the severity levels of BSR infection.