The aim of this study is to discuss the development of education during the British Colonial rule in Malaya. The scope of this study is focussed on four school systems under British colonialists, namely the Malay Vernacular School, Chinese Vernacular School, Tamil Vernacular School, and English Schools and its implications to the society and nation. The introduction of these four school systems is aimed at the economic and political interests of the British in Malaya. The Colonial Education System does not have a National Education Policy and brings many implications to the society and nation. It has caused class and status disparities among the societies and also caused socio-economic differences between races in Malaya. The process of socialization is not achieved among all races in Malaya under the Colonial Education. This study is qualitative and is approached through the library and archival research.