ABSTRACT The most crucial technical challenge facing the Malaysian and Indonesian oil palm industry is that the actual yield in the form of Fresh Fruit Bunch (FFB; unit in tonne per hectare (t ha−1)) are well below of potential levels and have stagnated over last two decades. Closing this wide yield gap would have a positive impact on the revenue as it increases productivity per hectare and it eventually leads to less pressure on opening new land and mitigates environmental costs of production. With respect to the indispensable need for closing this gap for future prosperity of this industry and sustainable production of palm oil, this study assessed oil palm yield, considering the potential growth of oil palm dependent on the site qualities and actual yield. Firstly, we mapped oil palm plantations combining yearly Advanced Land Observation Satellite (ALOS) Phased Array type L-band Synthetic Aperture Radar (PALSAR) and ALOS-2 mosaics of L-band backscatter, Moderate Resolution Imaging Spectroradiometer (MODIS) reflectance (MOD13Q1), and the MODIS Vegetation Continuous Field canopy cover product (MOD44B); where 10.3 and 6.68 million ha (Mha) of oil palm plantations were mapped, respectively, in Indonesia and Malaysia in 2017. Secondly, the age after planting was estimated at detected plantations using time series of MODIS canopy cover with correlation coefficient (r) of 0.68 and Root Mean Square Error (RMSE) of 4.7 years. Thirdly, the biophysical suitability of detected plantations was evaluated considering the spatial-temporal variation of different biophysical criteria. Combining information from second and third steps, we estimated the potential yield at 250 m spatial resolution. The average potential yield in Malaysia ranges between 13.8 t ha−1 and 19.3 t ha−1 in 2017, where in Indonesia it ranges between 17.8 t ha−1 and 21.7 t ha−1 in the same year. The actual yield in next step, has been quantified by HH-HV attribute of ALOS PALSAR and ALOS-2 mosaics, where the average actual yield in Malaysia ranges between 14.48 t ha−1 and 20.63 t ha−1 and in Indonesia it ranges between 8.49 t ha−1 and15.40 t ha−1 in 2017. Finally, comparing estimated potential and actual yields, we evaluated oil palm industries’ performances where distinct differences were found between two countries. In most of the Malaysian states quantified actual yields were above or at the level of estimated potential yields, whereas in all Indonesian provinces quantified actual yields were well below the potential level. Considering the favourability of environment, among all provinces/states, Sabah, and Sarawak states in Malaysia and Aceh and North Kalimantan provinces in Indonesia distinctly differ due to their poor performances from rest of provinces/states. The information on different yields provided in this study are indispensable needs for efficient and accountable policies as it enables governors to directly target specific objectives such as subsidies on fertilizers, productive cultivars, and new technologies for the plantations suffering from low yield. Also, this study provides benchmarks for each province/state for scopes of actual yield improvements for long-term planning.