The perennial tree crop with the highest oil production is the African oil palm (Elaeis guineensis Jacq). A well-managed palm yields 5 tons of oil per hectare annually, comprising 4.5 tons of palm oil and 0.5 tons of kernel oil. This yield is over tenfold greater than soybean and three times greater than coconut. Furthermore, for at least 25 years, the oil palm trees act as a carbon sink. Another species Elaeis oleifera or American oil palm, possesses valuable traits such as short stature, disease resistance, high oleic acid content, and cross compatibility, allowing for the transfer of these traits to cultivated species. Further, oil palm fiber could be used in applications such as bio-composites (molded plastic composites) and geo textiles composites made of polypropylene (PP) and EFB fiber have been reported in various studies. Oil palm is a cross-pollinated crop, primarily assisted by the pollinating weevil, Elaedobius kamerunicus. Therefore, controlled pollination is essential in breeding and hybrid seed production to prevent contamination by foreign pollen. The discovery of the inheritance of fruit form was a significant development in oil palm breeding, replacing thick-shelled dura with thin-shelled tenera for cultivation, resulting in a 30% increase in oil yield. Oil palm improvement, from traditional breeding to molecular breeding and genomic selection, has led to the development of genotypes yielding up to 10 metric tons (MT) of oil per hectare under experimental conditions. The present-day oil palm sector faces numerous challenges, including the environmental impact of expanding oil palm cultivation and the effects of climate change on crop growth and productivity. Other significant challenges include disease incidence. This chapter focuses on the emergence of oil palm as one of the important oil crops in the modern world, its cultivation and uses, genetic resources, breeding techniques, including molecular breeding, as well as challenges and prospects.