The palm oil industry in Malaysia is an essential source of export revenue for the nation. As demand for palm oil grows in the international market, the industry has been experiencing mounting pressure to ensure sustainable development. The necessity for sustainable palm oil is amplified with European Union’s requirement for certified and sustainably produced palm oil to enter its market. The commodity is also inundated with anti-palm oil campaigns, which emphasise allegations of unsustainable practices. Collectively, these challenges pose a formidable impact on the palm oil trade. However, there are insufficient studies that review the existing literature on the challenges related to palm oil sustainability. Hence, this article presents a review on the environmental and health sustainability concerns the Malaysian palm oil sector faces when trading in the European market. The findings of the article suggest the development of strategies by multi-stakeholders to improve commodity competitiveness in the international market. One strategy proposed in this article is to engage the media and Non-Governmental Organisations in developing effective communication mechanisms to disseminate a more balanced perspective of the commodity. A positive voice on the existing sustainability measures could help shape an unbiased public opinion on palm oil production, trade, and consumption.