This paper discusses the characteristics of rural tourism in Malaysia and Japan by comparing the Malaysia Homestay Program and the minshuku. Japan has been chosen as a comparative case study since Japanese tourists are the second-highest number of foreign tourists visited the Malaysian Homestay Program until 2018. Findings have shown that the Malaysia Homestay Program was derived from the English bed-and-breakfast, while the minshuku has been influenced by the European farm-stay. Although they differ in concepts, organizations, regulations, and community participation, both have contributed to the development of the tourism sectors in both countries.