Dispersion is a dangerous community conflict and is strictly prohibited in Islam. The political dispersion of Muslims in Malaysia has suffocated and challenged the status of the religion and its believers. This paper reviews the concept of dispersion according to the Sunnah of the prophet SAW with hope that it would help to establish the real meaning of the concept as stated in Hadith. The effects of disunity on society due to the political dispersion are also discussed. This paper reveals that dispersion among Muslims in the country occurs because of four factors: 1) the differences in the essence of religion; 2) the failure to hold on to the al-Quran and Sunnah in beliefs and practices; 3) the tendency to leave the obligated and commit the prohibited; and 4) the rebellion towards the government. The dispersion tarnishes the good image of religion, delays the Islamization process, affects the preaching to the non-Muslims and averts the economic growth of the Muslims.