The marked increase in oil palm hectarage in Sabah is largely due to the large tracts of land made available for oil palm planting. Out of the approximately one million hectares of land planted with oil palm, about 4246 ha are on coral soils located at FELDA Sahabat 23 and 24. These soils, derived from coral deposits have high soil pH and exchangeable Ca which can contribute to the imbalance of soil nutrients and affect nutrient availability to the palms. However, with proper agro-management inputs, the performance of oil palm on these soils can be as good as some of the mineral soils in the country. The highest yield obtained is about 24.05 t ha^-1 yr^-1 in the 11^th year of harvesting. This paper provides some background information on the soils, the problems in their management and actual yield performance of palms based on 13 years of FELDA experience.