Any discussion on political Islam in Malaysia will necessarily centre around the Islamic Party of Malaysia (PAS). This is largely because of its Islamist and revivalist goals, which aim to incorporate Islam into every aspect of life, including politics, law and governance. In the 1980s and 1990s, PAS and its arch-rival, the United Malays National Organisation (UMNO), engaged in a fierce battle to out-Islamize one another. This also resulted in the party leaders labelling each other deviant (kafir-mengkafir). Today, the competition to out-Islamize one another seems to have waned, with both parties having recently entered into an alliance called Muafakat Nasional (MN). In the 1970s, both UMNO and PAS were part of the Barisan Nasional (BN) coalition when the parties were united by the aim of national reconciliation. However, their partnership in MN was based on Malay- Muslim unity. Founded in September 2019, the MN lasted less than three years as the two parties contested against one another in the 15th General Election (GE15) held in November 2022. In this most recent election, PAS contested under the Perikatan Nasional (PN) banner and won the highest number of seats in its history, outnumbering even UMNO.

PAS has historically championed political Islam and the promotion of an Islamic state. In 1993, the party wanted to introduce the Syariah Criminal Code Bill II in Kelantan, and in 2002 the Syariah Criminal Offences (Hudud and Qisas) in Terengganu. In 2003, they published the Islamic State Document, which detailed the party's idea of an Islamic state governed by hudud laws. The president of the party, Abdul Hadi Awang, continues to advocate for an Islamic state in Malaysia, although the form may not be the same as what PAS proposed two decades ago.

However, recent developments in the Malay(sian) political scene suggest that PAS is no longer the only party championing political Islam; UMNO appears to be just as big a player as PAS. As long-standing historical rivals, UMNO has traditionally been viewed as the party that champions the protection of Malay supremacy and nationalism, while PAS has almost consistently advocated Islamism and conservative Islam.