A massive body of work has been done in assessing University-Industry collaboration in Malaysia context. As a result, different sets of barriers and issues that impede the collaboration have been highlighted and recommendations have been proposed by researchers. However, up to date there is little critical review that looks into the subject matter from the lenses of readiness and specifically from the micro level perspective. This review paper will review the current position of University-Industry collaboration in Malaysia and will suggest a model that will pave the way to a better understanding of University-Industry collaboration from the readiness perspective.