Despite the vast amount of research on ethnic integration, ethnocentrism, and social capital in the Malaysian literature, there is a growing need to scrutinise comparatively the findings of the studies which have been carried out so far. This paper examines the impact of ethnicity on interethnic relations by reviewing the relevant literature related to social capital and inter-ethnic relations in Malaysia. In order to investigate the different aspects of inter-ethnic relations of Malaysians, the empirical contributions reviewed in the present paper are from three academic disciplines: (i) media studies, (ii) urban studies; and (iii) sociology. Researchers in media studies have discussed the virtual dimension of inter-ethnic relations taking place in online social networking sites whereas urban studies have focused on the actual relationships between Malaysians in different urban settings. Sociological studies, on the other hand, have examined the socialisation processes of Malaysians across different ethnic groups and their racial bridging social capitals. The overall findings of these studies indicate that strong ethnic identities impede bridging social capital, trust among Malaysians and the social solidarity of Malaysians while reinforcing the bonding social capital and in-group solidarity within ethnic groups.