The focus of this paper is on the policy and implementation of School Self-Evaluation (SSE) conducted in Malaysian schools. It begins by having an overall look on what school evaluation is including its definition, purposes, link to external evaluation and also instruments which are used throughout the world. It then traces the history of SSE in Malaysia. Next, it discusses the policy underlining the SSE as dictated by the Ministry of Education Malaysia. This paper further explores the reality behind the implementation of this form of internal evaluation whilst linking it with school inspection conducted by the Inspection Body under the Ministry of Education Malaysia. By doing so, it will also try to capture some of the SSE concepts which embody its implementation. Then, it analyses the manner of how SSE is done by highlighting some important issues that need to be dealt with accordingly by the relevant authorities. Finally, it concludes by discussing the future of SSE in Malaysia.