This study aimed to investigate mediating effect of perceived tourism impacts on the relationship between residents’ place image and support for tourism development in Ranau, Sabah. Social Exchange Theory (SET) has been confirmed as a theory for predicting the support of residents towards tourism development. The sample used in this study are residents located at Ranau, Sabah that took part in answering the questionnaires. The variables involved in this study are support for tourism development as the dependent variable, residents’ place image as the independent variable, while perceived tourism impacts (economic, environmental, and socio-cultural) as the mediators. Partial Least Squares (PLS) is used as a tool to process data analysis in this study. The result of this study revealed that all direct relationships hypotheses (H1, H2, H4, H5 and H7) are supported, excluding H3 and H6 found non-significant relationship. Lastly, there is mediating effect of perceived economic and socio-cultural impacts of tourism (H8 and H10) on residents’ place image and support for tourism development in Ranau, Sabah, whereas perceived environmental impacts of tourism (H9) showed no mediating effect.