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Generally , this paper discusses Malaysia’s nation building process that incl udes the changing of national understanding from Sultana te perspective towards democratic nation. In 1957, Malaya achieved its independence . E thnic Malays through United Malays National Org anization (UMNO), ethnic Chinese through Malaysian Chinese Association (MCA) and ethnic Indian through Ma laysian Indian Con gress (MIC) are the major political parties, which at that time maintain ed separate identities, based on ethnicity. However, they had to compromise and unify for independence. T his paper will also touch on the factors, which influence d the process of natio n building , especially internal and external factors . The role of several important leaders, especially former Prime Minister Mahathir Mohamed , their policies and action s to develop and establish Mal aysia’s nation building process , is discussed.