ABSTRACT In general, the Homestay program and community involvement is one of the initiatives to develop rural communities especially in Sabah and Malaysia. This is because the implementation of the program contributes in the increase of Malaysia’s economic income as well as helps to improves socio-economy of community members that involved. Therefore, in order to implement the development of Homestay Program in Pulau Gaya, there are several factors that must be examined and considered to proves whether Pulau Gaya has the potential for the development of Homestay Program. Hence, this study aims to identify the potential of developing Homestay Program and the involvement of community members in Pulau Gaya, Kota Kinabalu, Sabah, Malaysia. In this study, researcher has applied Mixed Methods in data collection process. Through quantitative methods, researcher has conducted a questionnaire on 150 respondents including the head of the household or their representative. Meanwhile, in qualitative method, the researcher has interviewed 15 informants (Stakeholders) based on purposive sampling. As result of this study, it can be said that the potential to develop a homestay program and the involvement of community members is high based on the questionnaire data which shows that 101 people or 67.33 percent of respondents agreed to participate in the homestay program. In addition, SWOT analysis also shows that Pulau Gaya community members have the potential to develop homestay program because the aspect of strengths and opportunities in the SWOT analysis shows higher results than the aspects of weaknesses and threats. This shows that Pulau Gaya community members has higher potential. For that reason, the result of this study shows that Pulau Gaya has the potential to develop a homestay program due to the involvement of community members. ABSTRAK Program homestay dan penglibatan ahli komuniti merupakan salah satu inisiatif membangunkan komuniti di luar bandar di Sabah dan Malaysia amnya. Ini kerana, pelaksanaan program ...