Malaysia, a tropical country with 4.98 million hectares of agricultural land covered by oil palm trees (MPOB, 2011), produces approximately 90 Mt/y of palm biomass (GGS, 2011). Over the years, the palm products have diversified from the conventional palm oil to various innovative goods such as dried fibres, bio-briquettes, pellets, plywood and so on. The previously waste which is indicated as 'carbon source', is being transformed into 'carbon sink'. A conceptual idea on the trend of palm biomass usage is illustrated in Figure 1. The paper overviewed the green potential of palm industry in the country. In Malaysia, palm oil industry has been recognised as one of the key industry in developing the country's sustainable development strategy. Malaysia is applying the 'Waste-to-Wealth' concept, which expands the country's economic and sustainable development simultaneously.