The teaching of "akhlaq" (moral values) in Islamic Education lessons is one of the important aspects in the Integrated Curriculum for Secondary Schools in Malaysia. Its purpose is to develop the potential of the individual in a holistic, balanced and integrated manner, encompassing the intellectual, spiritual, emotional and physical aspects in order to create a balanced and harmonious human being with high moral standards. The aim of this article is to examine teachers' perceptions of the teaching of "akhlaq" at secondary school level. Data were collected from 22 respondents about the process of teaching and learning "akhlaq," the school environment and the internal and external factors that might influence the students' "akhlaq." The study found that most of the Islamic Education teachers interviewed were satisfied with the process of teaching and learning "akhlaq" in their schools. Despite a few weaknesses in terms of implementation, they believed that school activities, religious activities and school regulations at their schools gave positive and significant contributions to the development of students' "akhlaq." It was also found that peers, negative attitudes among some teachers, parents and local communities, the mass media, entertainment centres and the demands of jobs had negative influences on the students' "akhlaq."