This paper presents a laboratory study to evaluate the effect of increasing palm-oil content on the water-retention properties of kaolin clay. The amount of palm oil added to dry kaolin varied up to 40% by dry weight of kaolin, at intervals of 10%. Two separate experimental techniques on thirty independent samples were employed to capture the water-retention properties over a range of soil suction (ψ) values; a stress-controlled volumetric pressure plate extractor to capture measurements in the range of 101< ψ<103 kPa and chilled-mirror dew-point potentiometer for ψ values up to 106 kPa. The measured data on soil suction-water content (ψ−w) relationship for the palm oil mixed kaolin samples (POMK) were analysed using van Genuchten model. The results of this study show a reduction in the air-entry values and water holding capacity with increasing palm oil content. The discussions draw attention to contact angle and water repellency of the POMK samples as key factors dictating the water retention behavior of kaolin.