A diol-based refined, bleached, and deodorized (RBD) palm kernel oil polyol was prepared. It was found that the polyurethane foam produced only gives a good compressive strength property at a 45 kg/m(3) molded density. The combination of sorbitol into the polyol system resulted in a better dimensional stability and improved thermal conductivity as well as enhanced compressive strength. These were obtained by increasing the functionality of the polyol (functionality of 4.5) through introduction of a high molecular weight and branching polyhidric compound. Direct polycondensation and transesterification methods were used for the syntheses. The hydroxyl value, TLC, and FTIR were used to study the completion of the reaction. A comparative study of the mechanical properties and morphological behavior was carried out with a diol-based polyol. From the water-blown molded foam (zero ODP) with a density of about 44.2 kg/m(3) and a closed-cell content of 93%, a compressive strength of 222 kPa and a dimensional stability of 0.09, 0.10, and 0.12% at the length, width, and thickness of the foam, respectively, conditioned at -15 degreesC for 24 h, were obtained. The thermal conductivity improved to an initial value of 0.00198 W/mK, tested at 0 degreesC.