Thermoplastic elastomers (TPE) is an elastomeric material suitable for use in medical applications due to its inertness, low leachables and biocompatibility. Plasticisers are added into TPE blends to improve its processability and flexibility. TPEs are usually plasticised with mineral oil (MO) which are associated with inflammatory effects. Its different hydrocarbon components can induce different mechanisms that produces and regulates autoantibodies. Palm oil-based plasticisers in other polymer blends showed favourable mechanical properties, thermostability and enhanced biodegradation rate. A TPE blend with palm oil based polyester polyol (PP) as plasticiser was prepared and its suitability for use in medical applications were investigated. The tensile properties of the TPE blend was optimised and tested on in vitro enzymatic degradation with lipase over 60 days. The water uptake, weight loss and changes in tensile properties were measured. The biocompatibility was assessed by cytotoxicity assay on human kidney embryonic (HEK 293) cells and hemolysis was tested by direct contact of samples on human blood. The TPE blends with PP plasticisers showed significant weight loss and formation of cracks after enzymatic degradation; but with sustained mechanical properties. It is also a non-cytotoxic and non-hemolytic material which can be considered for medical applications like tissue engineering.