The Malaysian government strongly encourage the application of new techniques in building construction such as the Industrialized Building System (IBS). With this new IBS technology, numerous advantages will be obtained and will directly raise the performance of the building. However, the acceptance of IBS in Malaysia is still low. There are many components of IBS. The objective of this paper is to describe the Interlocking Mortarless Blocks System (IMB) and to identify the challenges in the utilization of the mortarless blocks system in housing construction. This research was carried out in Ipoh, Perak, with a focus on housing construction projects. Questionnaire was provided for the respondents to answer. The data was analyzed using the descriptive analysis from the SPSS software. The result revealed that one of the challenges is contractors who tend to use traditional construction method rather than the Interlocking Mortarless Blocks system method. The usage of Interlocking Mortarless Blocks in Malaysian is still low as there is no specific standard on Interlocking Mortarless Blocks system. Therefore, the findings of this research can hopefully assist Malaysian contractors in making a decision on the component to be used in their projects. Additionally, the findings ensure that the government can take appropriate action to encourage the use of IBS, especially the Interlocking Mortarless Blocks