In October 1993 during the Bosnian War, Mahathir Mohamad who is the Malaysian Prime Minister at the time has expressed concern with the violation of human rights in Bosnia and Herzegovina. Thus, he has send a group of Malaysian soldiers to participated in the UN Peacekeeping Operations and called the Organisation of Islamic Cooperation (OIC) in 1995 to set up measures and help the newly independent European country. Since that, both countries has establishing relations and Malaysia has recognise Bosnia and Herzegovina as one of the independent country in the world.
The bilateral trade between the two countries currently expanding with Malaysia's main exports to Bosnia and Herzegovina comprised almost entirely of electronics and electrical products, while the imports from Bosnia and Herzegovina consisted mainly of furniture and aluminium. Both countries also cooperates in agriculture and halal sector. Beside that, three Malaysian Islamic banks have set up operations in Bosnia on 2010.