This paper reviews the historical evolution of the relationship between Islam and politics in Malaysia. It also discusses the development of Islam and its political influence in the country. In Malaysia, Muslims make up more than 60% of the population, and Islam is enshrined in the Constitution as the sole official religion. Each Malaysian prime minister proposed and implemented different Islamization policies, which shows that the strong relationship between Islam and politics in the country. In addition to historical analysis, this article conducts a case study of "Allah Event" to demonstrate the inseparable relationship between Islam and the interests of the ethnic Malays. The case study also analyzes how Islam-related social events affect the political development in Malaysia.