Bamboo (Bambusoideae) is one of Malaysia's high-value non-timber forest products (NTFPs) with economic, environmental and social benefits. This study provides a comprehensive review of its prosperity, market prospects and industry constraints within the Malaysian context. The review systematically analyzed scholarly literature from 2020 to 2024, using Google Scholar and Scopus. To ensure a Malaysian context, search strings combined the keywords ‘bamboo’ AND ‘Malaysia,’ and only articles explicitly referring to Malaysia in their title, abstract, or keywords were selected. Articles were screened using the Mixed Methods Appraisal Tool (MMAT) to ensure high methodological quality, followed by thematic analysis focused on Malaysia's bamboo sector. The review identifies the economic potential of bamboo, highlighting its applications in construction, furniture, medicine and food. However, commercialisation is hindered by restrictive land policies, inadequate investment and limited industrial adoption. The Bamboo Industry Development Action Plan (2021–2030) was introduced to enhance production and exports, with sustainability and government support as key drivers of growth. Despite Malaysia's rich bamboo resources, the sector remains underdeveloped due to policy gaps and market reluctance. To promote bamboo as a viable alternative raw material, addressing land allocation issues, improving processing technologies and increasing public awareness are essential. This review aligns with Malaysia's Sustainable Development Goals (SDGs) by promoting economic growth (SDG 8), responsible consumption (SDG 12) and environmental sustainability (SDG 13). By integrating local policies and industry insights, the study provides a clearer direction for Malaysia's bamboo industry.