In 1995, the Ministry of Tourism Malaysia established a new rural tourism product called the Malaysian Homestay Program, to encourage rural Malays to participate actively in the tourism and provide Malay Kampung as a new type of tourism product. In 2012, there were 159 homestay programs established throughout the country, with 3,424 host families in rural areas that shows increased interest from the rural community for this program. This research clarifies the benefits of this program for rural development by analyzing the following points: 1. The evolution of the Malaysian Homestay Program from 1995 until 2013; 2. The effects of the establishment of the Malaysian Homestay Program on economy, environment, society, and culture of Malay Kampung based on interviews and field investigations at the Banghuris Homestay in Selangor.