The figure-hugging Kebaya Nyonya originated from Malacca, worn by the Peranakan people. Peranakans are the descendants of Chinese traders who settled in Malacca due to political and historical reasons, and married local women.

The outfit itself is innovated from the original kemban (a sarong wrapped around the body under the arms), an everyday outfit of local women back then. The adapted top of the Kebaya Nyonya is a form of acceptance towards the arrival of Islam in Malacca.

To this date, the Kebaya Nyonya is still around, and has been improvised in terms of fabrics used and the fastening enclosure of the kebaya top and sarong.