Crude palm oil (CPO) (Elaeis guineensis) can serve as a promising source of β-carotene in developing countries where vitamin A deficiency is prevalent. Indigenously produced CPO has been evaluated for its chemical, nutritional and toxicological properties, and found to be nutritionally adequate and toxicologically safe for human consumption. This paper reports the acceptability of CPO, stability of β-carotene in CPO products and its bioavailability in school children. CPO was found to be well accepted in preparations where its yellow/orange colour blended well with the natural colour of certain Indian food items. 1:1 blend of CPO and ground nut oil (GNO) preparations were better accepted. Total carotene in CPO estimated spectrophotometrically was 540 μg/g and β-carotene (estimated by reverse phase HPLC) was 370 μg/g, approximately 70% of total carotenes. Cooking losses of β-carotene in a range of products were observed to be 22 to 30% and total carotenes 24 to 32%. Repeated frying using the oil five times consecutively, resulted in a steep drop followed by a total loss of β-carotene accompanied by alteration of its physico-chemical and organoleptic properties. Bioavailability of CPO β-carotene in children was assessed by feeding foods prepared in CPO, in comparison with vitamin A. The modified relative dose response (MRDR) test, was implemented for assessing the vitamin A status.