Presently unused agricultural byproducts from coconut oil extraction are the fleshy section of the coconut fruit, called coconut kernels. Using coconut kernels as a sustainable substitute for traditional wood-based charcoal, this study looks into the viability of doing so. To make charcoal powder, dried coconut kernels were subjected to controlled pyrolysis and then pulverized. Tensile strength, moisture content, volatile matter content, fixed carbon content, and durability were measured in the generated charcoal samples. When compressing some charcoal into briquettes, sodium hydroxide and starch were utilized as binders. Coconut kernel charcoal was comparable to conventional biomass charcoal in that it had low mineral impurities and 70–80% fixed carbon. The starch-blended briquettes demonstrated superior mechanical integrity, holding onto 95% of their initial mass even after severe abrasion and burning for almost five times longer than raw charcoal. Valorizing this agricultural refuse to produce a sustainable charcoal feedstock is facilitated by the successful manufacturing of coconut charcoal. Beneficial fuel qualities were further increased by briquetting using starch binder. The study proved that it is possible to produce high-quality charcoal from coconut kernels and prove that this fuel source may either replace or enhance traditional wood charcoal in an environmentally friendly manner.