Pondok Institution is one of the earliest institutions concentrating in Islamic education established especially in Malay Peninsula. The growth of schools and madrasah administered by the government as well as private has reduced the development of the pondok in the early 90s. However, at present, pondok studies are burgeoning due to the high demand from the community. Although the pondok institution can be regarded as pioneers in instituting Islamic education, survey that has been conducted finds that there is no clear, transparent coordination in the curriculum or studies provided. This paper discusses some aspects of education in pondok institutions, particularly on the challenges and impediments faced by the pondok administrators from the point of view of officials in the Islamic Religious Department and the State Islamic Religious Council, who are invited during a roundtable discussion. Group interviews were conducted. The interview data were recorded, transcribed and analyzed thematically using ATLAS ti software. The study reveals that studies concerning pondok instutions are increasingly gaining acceptance from local communities. In addition, there are three main factors that support the development of the present pondok education which are the curriculum, finance and management of the pondok study itself. By focusing on issues and challenges surrounding pondok education, this study is a start to a beginning of a worthwhile and meaningful discussion of what it means to develop pondok institution and teach Islamic education within Malaysian context.