This study analyses the role of consociational politics as a mediating effect in enhancing ethnic unity among youth in Malaysia, with reference to the university students, through educational policy, economic system and religious practice. The research focuses on ethnicity due to its persistent influence on election outcomes over the previous two decades. Besides, a significant number of voters choose to base their political choices on the party that resonate with their ethnic interests. For this study, it involved a survey of 373 students from two Malaysian public universities, namely University of Malaya and the National Defence University of Malaysia. The obtained data are subjected to descriptive analysis as well as structural equation modelling (SEM) analysis. The results indicate that all three domains are significant in strengthening ethnic unity among youth, and this finding has national significance since it demonstrates the efficacy of this strategy in safeguarding Malaysia's diverse population The study's findings demonstrate that the grand coalition, as a fundamental component of consociational politics, possesses the capacity to cultivate a political alliance comprising many ethnic groupings, ultimately earning the confidence of the broader populace, particularly the younger generation. This facilitates the ascendance of a politically diverse party with individuals from various ethnic backgrounds to take over governance of the nation. Hence, the successful promotion of racial peace among the youth in Malaysia can be attributed to the implementation of a consociational strategy within the country.