The homestay, as community tourism, can become a catalyst for economic development of rural communities. However, the issue of sustainability of the homestay programme in the context of community development remains debatable. Previous studies revealed that the actual impact of homestay on the local community, especially in terms of the economy, remains at a minimum, and most of the homestay programme is not competitive or it is short-lived, especially when there is less or no help from external parties such as the government, NGOs etc. This study was conducted to explore the secret to successful homestay programmes using Miso Walai Homestay (MWH) in Kinabatangan, Sabah as a case study. A total of 15 key informants from the local community and external bodies who had been involved in the MWH starting from its early development were selected as research respondents. The data were collected using the semi-structured interview and analysed based on theme. The analysis revealed that the involvement of the local community in the initial development process utilising the bottom-up approach was the key to the successful operation of Miso Walai Homestay, which has received domestic and international recognition. The sense of ownership among the local community stimulated the whole community to participate in and to sustain the homestay.