Hard fractions of palm oil and coconut oil, blended in the ratios of 90:10, 85:15, 80:20 and 75:25, were interesterified for 8 h using Lipozyme TL IM. Major fatty acids in the blends were palmitic acid (41.7–48.4%) and oleic acid (26.2–30.8%). Medium‐chain fatty acids accounted for 4.5–13.1% of the blends. After interesterification (IE), slip melting point was found to decrease from 44.8–46.8 °C to 28.5–34.0 °C owing to reduction in solids content at all temperatures. At 37.5 °C, the blends containing 25% coconut stearins had 17.4–19% solids, which reduced to 0.4–1.5% on IE, and the slip melting point (28.6 and 28.8 °C) indicated their suitability as margarine base. The reduction in solid fat index of the interesterified fats is attributed to the decrease in high‐melting triacylglycerols in palm oil (GS3 and GS2U type) and increase in triolein (GU3) content from 1 to 9.2%. Retention of tocopherols and β‐carotene during IE was 76 and 60.1%, respectively, in 75:25 palm stearin and coconut stearin blend.