Sabah is one of the states in the Federation of Malaysia that is famous not only for the natural beauty of its flora and fauna but also for the uniqueness of its community which consists of dozens of ethnic groups. Based on history, education in Sabah has existed since the administration of the Sultanate of Brunei and the Sultanate of Sulu. While under the rule of the Sultanate of Brunei, the Muslim community who mostly lived in the coastal area of Sabah had an education based on the study of the Al-Quran. During that period, education was in an informal form focused on religious book reading activities carried out in prayer hall, mosques and lodges. Meanwhile for the non-Muslim community, education is also informal through guidance from parents, certain ceremonies or celebrations. When Sabah was under the administration of foreign powers, education in the state was heavily influenced by the policies of administrators such as the British North Borneo Chartered Company (SBBUB) and British colonialism. However, it is generally found that the education of the Sabah community is not taken seriously by the SBBU administrators nor the British colonial authorities. Therefore, the discussion will be focused on the challenges faced in the field of education in Sabah before 1963. The study of this paper uses a qualitative analysis approach and uses archival and library research methods by analyzing various primary and secondary sources such as Colonial Office Files, Statements Annuals, books and articles to obtain research information sources. This study will produce an analysis that can provide a clearer understanding of the historical background of the development of education in Sabah. Identification of the challenges faced will enable the planning of strategies that can further strengthen education in Sabah.