Terminalia catappa Linn (TC) is an ornamental tree planted extensively in many countries. It has been known for a long time that the seeds are edible but no research has focused on the realm of its use as food. Our previous data showed that the seed contains high levels of oil content (600 g/kg) and possesses the optimum fatty acid balance indicated in fat dietary guidelines. This study aims to investigate the physical and chemical properties and the possibility of using TC seed oil as a new dietary lipid. The effects of extraction conditions, partial refining process, and storage stability on TC oil properties were conducted compared with soybean oil. The results showed that physicochemical properties including the density, refractive index, melting point, acidity, free fatty acid, saponification value, unsaponifiable, peroxide, and fatty acid composition of the extracted oil were comparable with soybean oil and their values followed the dietary standard of edible oil.