Farnesol interacts with membranes in a wide variety of biological contexts, yet our understanding of how it affects lipid bilayers is not yet complete. This study investigates how the 15-carbon isoprenoid, farnesol, influences the phase behaviour, lateral organization, and mechanical stability of dimyristol phosphatidylcholine (DMPC) model membranes. Differential scanning calorimetry (DSC) of multilamellar DMPC-farnesol mixtures (up to 26 mol% farnesol) demonstrates how this isoprenoid lowers and broadens the gel-fluid phase transition. A gel-fluid coexistence region becomes progressively more dominant with increasing farnesol concentration and at concentrations of and greater than 10.8 mol%, an upper transition emerges at about 35 degrees C. Atomic force microscopy images of supported farnesol-DMPC bilayers containing 10 and 20 mol% farnesol provide structural evidence of gel-fluid coexistence around the main transition. Above this coexistence region, membranes exhibit homogeneous lateral organization but at temperatures below the main gel-fluid coexistence region, another form of phase coexistence is observed. The solid nature of the gel phase is confirmed using micropipette aspiration. The combined thermodynamic, structural, and mechanical data allow us to construct a phase diagram. Our results show that farnesol preferentially partitions into the fluid phase and induces phase coexistence in membranes below the main transition of the pure lipid.