Palm oil industry becomes one of the most important agro-industries for tropical countries due to unique properties and wide range uses of palm oil for various end products. In a palm oil extraction process, a significantly large quantity of water is required wherein a half portion of the water will end up as effluent. This palm oil milling effluent (POME) has an extremely high content of organic matter which can cause severe pollution of waterways and other environmental problems. Disposal of this highly polluting effluent has become a major problem for palm oil milling industry. Therefore, several methods have been proposed to treat the POME so it could comply with environmental regulation while discharged or to recover water and other valuable components from the effluent. Membrane technologies have emerged as a feasible alternative to conventional treatment in vegetable oil processing due to their attractive features, such as low energy consumption, reduction in the number of processing steps, high separation efficiency, and improvement of final product quality. In the case of POME treatment, integrated membrane-based process promises an efficient water recycling and total solid recovery from the effluent thus eliminating the environmental problem. Recently, a novel concept combining oil-oil extraction and continuous filtration using superhydrophobic membrane has been proposed to achieve a zero sludge palm oil milling plant. In this concept, the huge wastewater effluent generated from the conventional process could be eliminated and the palm oil milling process could be simplified. Furthermore, the superhydrophobic membrane enables the production of palm oil with high purity. In this paper, the prospect of zero sludge palm oil milling plant concept and strategies to achieve the proposed concept will be reviewed. In addition, development of superhydrophobic membrane and its prospect, and phytonutrients recovery will also be pointed out.