This study propounds a sustainable alternative to petroleum-based polyurethane (PU) foams, aiming to curtail this nonrenewable resource’s continued and uncontrolled use. Coconut fatty acid distillate (CFAD) and crude glycerol (CG), both wastes generated from vegetable oil processes, were utilized for bio-based polyol production for rigid PU foam application. The raw materials were subjected to catalyzed glycerolysis with alkaline-alcohol neutralization and bleaching. The resulting polyol possessed properties suitable for rigid foam application, with an average OH number of 215 mg KOH/g, an acid number of 7.2983 mg KOH/g, and a Gardner color value of 18. The polyol was used to prepare rigid PU foam, and its properties were determined using Fourier transform infrared spectroscopy (FTIR), thermogravimetric analysis/derivative thermogravimetric (TGA/DTA), and universal testing machine (UTM). Additionally, the cell foam morphology was investigated by scanning electron microscope (SEM), in which most of its structure revealed an open-celled network and quantified at 92.71% open-cell content using pycnometric testing. The PU foam thermal and mechanical analyses results showed an average compressive strength of 210.43 kPa, a thermal conductivity of 32.10 mW·m−1K−1, and a density of 44.65 kg·m−3. These properties showed its applicability as a type I structural sandwich panel core material, thus demonstrating the potential use of CFAD and CG in commercial polyol and PU foam production.