In a large bowl, whisk together coconut cream pudding mix and milk until smooth and slightly thickened (about 1 minute).

Fold in one container of whipped topping until fully combined.

In a 9×13-inch dish, layer ¼ of the graham crackers on the bottom.

Spread ⅓ of the pudding mixture over the crackers evenly.

Repeat layering two more times.

Add a final layer of graham crackers on top.

Spread the remaining whipped topping evenly over the top layer.

Cover and refrigerate for at least 6 hours, preferably overnight.

Before serving, sprinkle toasted coconut on top.

This Coconut Icebox Cake transforms into a soft, sliceable dessert as it chills.