Tourism has become the economic mainstream and backbone of many countries, especially a developing country like Malaysia. In many cases, local communities from the rural areas are interested in and even put a lot of effort into developing the tourism industry in their respective villages, Kampung Pukak Homestay is one of the tourism products offered in Kiulu, Tamparuli Subdistrict, Tuaran, Sabah. The uniqueness of this project is that it blends both the elements of ecotourism and community-based tourism to ensure sustainable development. Nevertheless, the questions remain: has the Whole community gained socio-economic benefits from the tourism products‘? What aspects have been emphasized to attract tourists, and which ones indirectly contribute income to both the participants and the community as a Whole? The paper also discusses the challenges and limitations faced by the local community, especially the homestay participants, in achieving a truly community-based tourism attraction. In order to investigate all these issues, the researcher used both qualitative and quantitative approaches While conducting this research, such as in-depth interviews and participation observation, and also conducted a survey. Despite drawbacks, it is felt that homestay tourism should be carried on since it encourages community involvement which will benefit and empower the local community in the long run.