Despite the importance of Small and Medium Enterprises (SMEs) and its role as a key participant in international business, empirical research on Malaysian SMEs in the area of internationalization has been limited. In an attempt to investigate the relationship of internationalization and performance of SMEs, this study focuses on SMEs in the Malaysian manufacturing sector. The conceptual framework is developed based on previous literature gaps on SME internationalization and firm performance. A sample of 77 SMEs in the manufacturing sector has participated in this research. Using a structured questionnaire, the data was collected through the post from SMEs located in the northern region of Peninsular Malaysia. The study showed a significant relationship between internationalization and performance. This result poses some implications to managers and policy makers.