Islamophobia has emerged as a pressing socio-political issue, not only in Western societies but increasingly within Muslim-majority countries like Malaysia. Despite Malaysia's official embrace of Islam within a multicultural framework, Islamophobic sentiments persist, often fuelled by digital media, misinformation, and politicized narratives. This study investigates the awareness, perceived causes, lived impacts, and proposed solutions to Islamophobia among Muslims in Malaysia, using a quantitative survey approach. A total of 229 respondents, comprising both born Muslims and Muslim converts, participated in a structured questionnaire conducted in Melaka, selected for its diverse population profile. Findings reveal a high awareness of Islamophobia (85%), predominantly informed by social media (73%), yet participation in related educational programs remains minimal (8%). Respondents identified the misrepresentation of Islam in popular culture, political manipulation, and racial prejudice as major drivers of Islamophobia. The impacts are significant, with acknowledged heightened religious tension (82%), reported harassment (76.3%), and experienced employment-related discrimination (57.7%). A total of 5.2% believed Islamophobia is effectively controlled in Malaysia, highlighting gaps between policy and public experience. To address these challenges, respondents expressed strong support for systemic interventions, including stricter digital content regulation (91.8%), government-led initiatives (85.6%), and formal education reforms (83.5%). The findings underscore the need for a comprehensive strategy combining institutional reform, media accountability, and community engagement to counter Islamophobia effectively. This study contributes critical empirical evidence from Southeast Asia, offering actionable insights for policymakers, educators, and civil society actors working to foster religious tolerance and social cohesion.