This chapter explores tourism and community development in Malaysia toward sustainable tourism practice. Tourism development is closely aligned with the aim to eradicate poverty, rural community development, reduce the disparity between the rich and poor, leading to national cohesion and cultural commodification. Community-based tourism (CBT) is a type of rural tourism usually managed by communities and intended to deliver wider community benefit. Currently, studies on sustainable tourism are heavily dictated by economic and environmental aspects, ignoring the significance of sociocultural perspective. The local people are strongly attached to their culture and they believe that tourism helps them not only to protect their culture but also to learn foreign culture from tourists. “Outsiders” through various developmental initiatives have been always guiding the local communities to engage in tourism business effectively. However, the generally used top-down approach has resulted in forced involvement of the community in tourism development in their areas. Thus, the issue of sustainable tourism practice is still questionable when the planning and implementation of development projects are mainly influenced by the outsiders. This chapter specifically 162presents the importance of community-based initiatives toward sustainable tourism in Malaysia. This unique contribution will be a significant addition to the body of knowledge in the sustainable tourism aspect. In a nutshell, CBT can be considered as a desired form of tourism toward achieving sustainable development goals (SDGs).