Because babassu trees grow in dense jungles, the collection and transport of the nuts is difficult. Nevertheless, the tree has been exploited and the originally extensive natural forests have been thinned out. Machines have been developed to crack the hard shell and remove the kernels from the nut, but most of the kernel removal is still done by hand.

Like the coconut palm, the babassu palm has many uses. The fruit may be used when green in the smoking of rubber. When ripe, it is eaten as a nutritious food. Stalks serve as timbers, and the leaves as coverings and partitions in dwellings. Leaves are also used domestically for making baskets and other plaited objects. A liquid contained in the fruit stalk, or peduncle, is fermented and drunk as an alcoholic beverage, much prized locally. Fibre is taken from the exocarp, or outer layer of the fruit, and used for various purposes. Nutritious beverages similar to chocolate drinks may be made from the mesocarp, or main portion of the fruit. Buttons are made of the endocarp, or inner layer.

The fruits, or nuts, are oblong, rusty in colour, and range in length up to about 15 cm (6 inches). They are borne in bunches of as many as 600 and contain 2 to 6 kernels each. Kernels are 65 to 68 percent oil but less than 10 percent of the weight of the nut.