Sustainable development becomes the significant tool of planning and design of building structures and infrastructures in this decade. The land use development for neighbourhood construction should be protected from being overused and devastated. Malaysia must starts to incorporate sustainable neighbourhood planning and design so that the future generation can be benefited from this type of development. However less focus is being paid to this type of development which needs attention to be given especially on small-scale green areas. The main concern of this paper is to address the practice of sustainable neighbourhood planning and design in Malaysia as it gives much impact to the living environment of a group of community. The issues pertaining Malaysian sustainable development planning and sustainable neighbourhood design were discussed in this paper. Results from the Malaysian Local Council Structure Plan review were discussed to highlight the sustainable neighbourhood importance. The result indicates that the sustainable neighbourhood planning and design in Malaysia needs to be improved over the current practices to create more environmental-friendly neighbourhood.

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