Abstract: Biomass can be defined as any organic material derived from living organisms and it is one of the most used source of renewable energy. The objective of this study is to identify the challenges arising in implementing biomass energy in Malaysia. Challenges of implementing biomass energy have been classified into six categories, technical, financial, social, environmental, policy/regulatory and institutional/organizational issues. Intensive literature review approach is used to identify the challenges. Malaysia has abundant of biomass resources, these make the biomass most promising option, compare to others various sources of renewable energy at Malaysia. The research is expected to be able to come out with a list of biomass energy challenges in Malaysia.