The theme of the political participation of the indigenous Muslim community in Labuan is important to fill the gap in Labuan’s political history. The main questions which the study aimed to answer were: what political roles did the indigenous Muslim community play during the British colonial period from 1946-1963 in Labuan? What were the factors contributing to their political involvement and what were the reactions of the British? The study’s three main objectives were: to describe the political participation of the indigenous Muslim community in Labuan from the period of 1946-1963, to analyse their roles in the British colonial administration, and to examine the British policy towards the involvement of the Muslim leaders in the political process. The study was mainly carried out through qualitative approach, involving archival research and in-depth interviews. Internal and external criticism methods were also applied in assessing, interpreting and analysing the primary, secondary and oral sources. All the key themes were presented in descriptive and chronological manner. The political participation of the indigenous Muslim community in Labuan can be divided into two phases: the first phase from 1946-1960 and the second phase, from 1961-1963. During the first phase, their political participation was essentially driven by their desires to safeguard their religious rights (Islam), ethnic identity and their collective ethnic interests. Throughout the second phase, the indigenous Muslim leaders were motivated by the Muslim community’s political rights and Labuan’s independence under the Malaysia proposal. The British attitudes towards the increased political awareness among the indigenous Muslim community leaders were generally accommodative. The indigenous Muslim community leaders were given opportunities to take part in the political activities. However, the political participation of the indigenous Muslim community was rather limited as Muslim leaders were incapacitated from playing greater political roles in the British colonial administration.Keywords: political participation, indigenous Muslim community, Labuan, British, Malaysia.