Waqf is an important component of the Islamic economic instruments which is firmly believed, can solve the socio-economic problem mainly in the good attempt to eradicate poverty due to scarcity of income and employment. Although Waqf had been implemented in Malaysia for many years, it has yet give impact in contributing welfare of the people in this present day. Majlis Agama Islam Selangor (MAIS) is one of the religious institutions in this country that play a significant role in developing and managing Muslims Waqf in the state of Selangor. Lack of awareness, not getting enough funds beside others several challenges in Waqf will be discussed in this paper. Thus, this study attempts to discuss issues and challenges facing by MAIS during the implementation. Therefore this paper will propose action plan that should be taken by MAIS to improve effectiveness and efficiency of Waqf. In addition, the paper will identify the significance impact of Waqf implementation in MAIS towards generating economic growth to the state of Selangor.