Coconuts can be found hanging in small bunches high up in the Palm Trees broad leaves. They also have the chance to fall and hit you on the head! If you don't want to wait, you'll have to try to climb or build to the top of the swaying Palm Trees.
Where to find Coconuts
You'll be able to find the Coconuts hanging on the branches of Palm Trees on islands in the middle of Hytale's Oceans.