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The pondok institution is the earliest formal education system ever established in Malaysia particularly and the entire archipelago. This institution has made vast contributions that are invaluable to the development of Islamic education since its establishment until the present. Its legacy and the monumental role it plays in the propagation of Islam and the dissemination of Islamic knowledge is evident in the numerous respectable religious scholars it has successfully produced thus far. Nevertheless, a transformation is inevitable as this institution faces an increasing need to adopt technological advancements in this era of globalisation. This transformation which will encompass several aspects is indeed important to ensure the sustainability of this institution in the years to come. In addition, this study will discuss the transformation process that will ensure the sustainability of the pondok institution in Malaysia. To achieve this particular objective, this research will utilise the qualitative method which encompasses library research to compile the necessary data. The compiled data will then be analysed according to content to produce the research findings. The research findings show several transformations which include administrative affairs, facilities as well as teaching and learning (T & L) methods that need to be incorporated into ensuring the sustainability of this institution. The establishment of more modern Islamic studies institutions seek to rival the present traditional pondok institution. Due to this, it is imperative that the latter strives towards sustainability by undergoing a muchneeded transformation to ensure its rightful place in the field of Islamic education and the community at large. With this transformation, the pondok institution will be able to retain its turath elements and remain relevant in these modern times. Moreover, it will also be able to compete with other institutions which provide Islamic education.