Understanding the sexual identity development of the sexual and gender minority among Malay women (SGMMW) is necessary for providing them with appropriate services. However, owing to a paucity of studies on this subject, the present study thus explores the sexual identity development of SGMMW. A phenomenology study was performed on 30 SGMMW. In-depth, semi-guided virtual interviews were conducted, each lasting 45–90 min. Recordings of the interviews were transcribed verbatim. Subsequently, all transcriptions were added to ATLAS.ti 8 for analysis and coding. Three themes were elucidated from the study: awareness of incongruence, exploration of self-identity, and consolidation in the L Community. These three themes represent three phases of the sexual identity development of SGMMW. In Phase 1, SGMMW becomes aware of their sexual orientation toward females. In Phase 2, SGMMW explored information, community, and partners that could affirm their identities. In Phase 3, SGMMW consolidated itself into a new community that aligned with its new identity, also known as the L Community. Sexual identity development is influenced by environmental factors such as family, friends, institutions, and social media; personal factors such as a belief that men are bad; and behavioral factors such as behaving like a man to protect the self and others. In conclusion, SGMMW identity development involves three phases and is influenced by environmental, personal, and behavioral factors.