Abstract : This study investigates the role of Tabung Baitulmal Sarawak (TBS) in promoting societal development in Sarawak through its Islamic social finance initiatives, particularly focusing on the distribution of zakat to eight categories of Asnaf in areas such as poverty alleviation and educational sponsorship. This study examines the status of Zakat fund allocation trends especially on poverty alleviation. Employing a secondary data of case study under the interpretivist paradigm with an inductive approach, data was collected from published sources spanning 2000 to 2024 via platforms like Web of Science, ResearchGate, Google Scholar, Connected Papers, and Emerald Insight, complemented by semi-structured interviews with TBS officials. Analytical tools such as RStudio’s Bibliography app, VOSviewer, and Microsoft Excel supported data analysis. The findings reveal that while TBS plays a crucial role in community development in line with Islamic principles, its impact is currently underutilized due to gaps in transparency, outreach, and monitoring. Nevertheless, the study highlights TBS’s strategic focus on educational empowerment, particularly for the B40 group, as a means of ensuring long-term socio-economic improvement. This research contributes to the limited literature on Baitulmal institutions in Malaysia and offers valuable insights for enhancing the effectiveness of Islamic social finance practices nationwide.