This article lists important figures and events in Malaysian public affairs during the year 1986, together with births and deaths of notable Malaysians.
March – Rioters, protesting against the appointment of the Chief Minister and Head of State, detonated bombs and committed arson around major towns in the 1986 Sabah riots.
14 April – Sudirman Arshad held an open-air concert on Chow Kit Road, which was the first time ever that a street concert drew a 100,000-person crowd on a Monday night.
17[3]–22 October – The Pudu Prison siege took place at Pudu Prison, Kuala Lumpur. On October 22, the hostage crisis at the prison ended without bloodshed. Six prisoners were captured and two hostages were rescued.
November – Ferry Malaysia was launched at Kuantan Port, Pahang.
Malaysia was only formed on September 16, 1963. Prior to that date, Peninsular Malaysia was known as Malaya, Sarawak under Crown Colony of Sarawak and Kingdom of Sarawak and Sabah under North Borneo.