Abstract. The paper presents an investigation on local community participation and barriers in rural tourism. It identifies two sides of community participation in tourism as identified by Timothy [5], which are; the benefits point of view and from the decision making process perspective. It also identifies the communities' barriers in engaging in tourism and uses Tosun's [18] approach in examining the barriers. A total of eighty-three questionnaire forms were completed by respondents from seven villages in Kiulu, Sabah, Malaysia. Respondents involved in tourism were mainly engaged as river guides, homestay operators and Tagal participants. Their involvement in the decision making process were limited to attending meetings and giving ideas and opinions only. The main barriers to participate in tourism were related to their limited knowledge about tourism, lack of capital, unable to communicate well in English, lack of information about tourism development in Kiulu, and limited incentives or support from the government for tourism development. The findings have significant implication to community participation in tourism especially in rural settings. More efforts should be made to ensure many more communities participate in tourism so as to share the benefits of tourism.