This paper aims to discuss the development and challenges of Islamic Visual Arts in Malaysia. Art was often considered as mere entertainment, focusing more on temporal and fun aspects. However, art in the perspective of Islam is considered as part of the human nature and needs. The Islamic concept of art leads people to witness the Oneness of Allah (Tawheed) which eventually brings them to the submission of Allah SWT. Islam encompasses all aspects of human life in which a person as an individual was not complete without the religious consciousness. Malaysia gained the independence in 1957, however, the acceptance of Islamic people towards Western secularism or liberalism has placed Islam as part of other religions and this dualism has affected the general pattern of thought and life of the community.