This article examines the pendet dance dispute of 2009 which has heightened the tension in Indonesia-Malaysia relations. Employing the realism perspective in international relations studies, this article presents its arguments in three parts: (1) scenario analysis of pendet dance dispute, (2) the factors that influence the issue and (3) its impact on Indonesia-Malaysia relations. Although the issue or controversy of the pendet dance has drawn gained attention in both countries, the reaction of some parties in Indonesia is seen to be quite extreme compared to that of Malaysia. This is largely due to the fact that the pendet dance dispute occurred within the scenario of internal political contestation of post 2009 presidential election in Indonesia. Consequently, anti-Malaysian sentiments were exploited in Indonesia. Nevertheless, the government-to-government relation remains stable, despite the fact that the people-to-people relation is affected, hence adding to another unpleasant spot in the history of the two nations.