Industrialized Building System (IBS) is a method of construction with concentrated practices consist of techniques, products and a set of linked elements which operate collectively to accomplish objectives. The Industrialized Building System (IBS) has been recognized as a viable method for improving overall construction performance in terms of quality, cost, safety and health, waste reduction, and productivity. Malaysian construction industry considered as one of contributors towards the development of the country. The acceptance level of IBS is still below government expectation. Thus, Malaysian government has been continuously encouraging the industry to use and implement IBS. Conventional systems have several drawbacks, including project delays, low economic efficiency, excess inventory, and poor product quality. When it comes to implementing IBS, construction companies still face a number of obstacles and problems, notably in terms of contractual and procurement concerns, which leads to the low adoption of IBS in Malaysia. There are barriers to the acceptance of IBS technology, focused on awareness of historical failure and risks connected to IBS practices to provide enhanced performance. Therefore, transformation from the existing conventional building systems to the industrialized building systems (IBS) is needed more than ever. Flexibility of IBS in Malaysia's construction industry is very low due to numerous shortcomings and obstacles. Due to its environmental, economic, and social benefits, IBS could play a significant role in the Malaysian construction industry in the future. This paper concentrates on the potential role of IBS to sustainable construction practices in Malaysia. It also highlights the awareness, barriers, advantages, and disadvantages of IBS in construction sector. The study concludes with recommendations for the Malaysian construction stakeholders to encourage and increase the utilization of industrialized building systems. © 2023 Author(s).