Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oils are easier to stabilize and maintain quality of flavor and consistency in ultra-processed foods, so they are frequently favored by food manufacturers. Is palm oil good or bad for health? Palm oil is likely healthier than butter, but less heart-healthy than olive oil and other oils that are liquid at room temperature. Palm oil could interact with: Medications that slow blood clotting (anticoagulant or antiplatelet drugs) Beta-carotene supplements.