Dermatological problems of the skin, hair or nails are considered one of the most cutaneous complaints and form around 30% of all visits to dermatologists. Recent treatments have been focused on exploring natural agents as alternatives for antibiotic-free treatments. Palm kernel oil (PKO) is identified as one of the healthy alternatives and is incorporated into traditional healthcare as a result of its safety and efficacy on the human body. PKO is a vegetable oil which is extracted from the seeds of the palm plant fruit. It has various therapeutic benefits, especially on skin health including antibacterial, antifungal, emollient, moisturiser, antioxidant and anti-ageing effects. Moreover, the moisturising potential can prevent dryness and enhance the elasticity of the skin. These remarkable effects could be the key to encouraging the pharmaceutical industries and researchers to further utilise and incorporate pharmacological properties of PKO in developing natural pharmaceutical skincare and dermatological products as a promising safe, sustainable and cost-effective alternative. This article highlights the important pharmacological effects and the latest pharmaceutical applications of PKO and its derivatives.