: The purpose of education in Islam is among others to form Muslim personal in the development of spiritual, physical, emotional intellectual and social. It is not only produced good citizens but also covers the formation of a complete human capital in terms of religious and worldly life. In addition, the education that is based on the teachings of Islam also aimed at producing righteous human that can meet the needs of the world and life in the hereafter. The main focus of this article is about the development of Islamic Education in Malaysia, the type and level of education, and education policy in Malaysia