The use of precursors from natural based polymers offer a more biocompatible and biodegradable properties in producing polymer drug vehicle compared to drug vehicles made from synthetic polymer precursors, which normally found in high molecular weight (MW). High MW polymer will lead to immunologic inflammatory responses due to their lower biodegradability and higher cytotoxicity compared to low MW that could give smaller particle size, higher solubility, higher release efficiency, non-immunogenic, better biodegradability and lower cytotoxicity. Therefore, this study is aimed to produce valuable precursors, particularly to produce epoxidized palm olein (EPOo) and diol, to be used in the development of a new polymeric drug vehicle with low MW. An EPOo was synthesized via in-situ epoxidizing of palm olein (POo) with peracid and sulfuric acid (H2SO4 ) catalyst. Meanwhile the diol was synthesized using hydroxylation of palm oil-based oleic acid via esterification of oleic acid (OA) with glycerol and 4-dodecylbenzyl sulfonic acid catalyst (DBSA). It was found that both palm oil-based precursors have been successfully synthesized from natural resources of palm oil. Physico-chemical properties of the synthesized precursors showed that the EPOo and the diol possess average molecular weight (MW) between 900-1500 g/mol and hydroxyl functionality between 2 and 3, based on the presence of hydroxyl (O-H) group functionality, showed in the Infra-red (IR) spectra in the range of 3200-3600 cm-1 . These low MW palm oil based-precursors have potential uses for the design and development of new properties of polymeric drug vehicle such as acrylated palm olein (APOo) and polyol polyester, which will produce particle size in the range of 100 - 200 nm or smaller with high efficiency drug loading and controlled release profiles.