Community-based tourism (CBT) can ensure environmental, social and cultural sustainability of an area. The Malaysian homestay program was announced officially as a CBT product in 1995. Jelawang is one of the officially registered villages of Kelantan for homestay accommodations. Local people lifestyles, cultural heritage, traditional food, and local musical performances are attracting the guests of home stay accommodations in this village. The present study analyzes the potentials and opportunities of CBT development at Jelawang based on homestay accommodation through stakeholder consultations and communities perception. CBT implementation depends on the active participation of stakeholders- local communities, tourism organizations, and government institutions. The potentials situations of Jelawang to develop CBT activities are biodiversity, water catchments, ecotourism potential, ecosystem, environmental education, nature recreation, and easy access. The study recommended several initiatives including tourism packages, identified products, pricing and promotion, modified homestay, develop communication skill, training and research initiatives for CBT development at Jelawang. Finally, effective planning, financial allocation, managerial efficiency, and proper community participation will be ensuring CBT development at Jelawang which will benefit the local communities through their social and economic well beings
