This paper aims to explore the interdepence and dynamic linkages between the Syariah compliant stocks available in the Bursa Malaysia and interest rate, which is suppoerted by the bivariate cointegration technique.The most objectives of this paper are two fold. understanding the interpendence and dunamic linkages between the Syariah compliant stocks and interest rate may reveal the long run relationship between them, in this paper we employ the Kuala lumpur Syariah Index (KLSI) and 3 months T-bill as objects of the study. The KLSI , which is used as representations oft he Syariah compliant stocks, is the indext that aims to meet the demands of local and foreign investors who seek tp invest in securities of Main Board companies in the Kuala Lumpur Composite Index.