The level of hygiene of a developing country represents the level of its MSW management. Apart from the various policies, acts, awareness campaigns and ongoing implementation of recycling programs which aiming to reduce the volume of municipal solid waste to the disposal area as the last location, the use of index principles, is increasingly favoured in sustainable environmental development. In Malaysia, the implementation of sustainable index principles is still low especially in managing municipal solid waste. Hence this research explores the implementation of the principles of sustainable environmental development index, recommending sustainability indicator based on national development plans and the key challenges in implementing these principles in the management of solid waste in Malaysia. Content analysis techniques were used in this study where reading materials such as journals, thesis reports, research projects, and research reports were used. The results of the analysis have identified the various criteria in existed indices that can be applied in managing municipal solid waste in Malaysia. In addition, the challenges of implementing the sustainable development index in managing municipal solid waste in Malaysia have also been discussed. The results of this study are expected to be used by policy makers and all stakeholders.