Sukuk or Islamic bond is one of the Sharia-compliant financial instruments in the Malaysian capital market. The growth of the Islamic bond market in Malaysia has shown an impressive development over the past three decades. In fact, sukuk grow internationally with a positive trend. This paper aims to provide insights into the growth and prospect of Islamic bond in Malaysia. For this purpose, we will emphasize on several areas including the growth of sukuk, roles in the economic development and its sustainability during financial crisis. Despitethe rapid growth of other financial instruments, we expect the growth movements of Islamic bond to outpace as this instrument provides opportunities to beat a wider investor.