This study develops a systemic conceptual model to analyze the dynamics of technological extension and its impact on the sustainability of Colombia’s oil palm production sector. Using a system dynamics-based methodological approach, multiple sources of information were integrated, including the Sustainability Index (SI), socio-economic characterizations of producers, and ethnographic insights, with the aim of identifying key actors and their interactions within the system, modeling causal relationships and feedback loops. In contrast with the traditional linear model of technology transfer, this model reveals non-linear dynamic structures, highlighting ten systemic loops (six reinforcing and four balancing) that explain how technological adoption, legal and regulatory compliance, and the SI risk level interact through dynamic feedback mechanisms. Beyond providing a structural representation of the system, the model offers concrete guidance for policy formulation and intervention strategies tailored to different producer typologies. Theoretically, this research broadens the understanding of diffusion, extension, and technology adoption processes in complex agricultural systems in developing countries. Practically, it provides a tool for analysis and planning to strengthen the sustainability of the Colombian oil palm sector, with potential applicability to other agro-industrial contexts. Future research should advance toward dynamic simulations to evaluate intervention scenarios, emphasizing the need for progressive incentive schemes, participatory extension, and integrated regulatory frameworks that promote high levels of long-term sustainability compliance.