The Straits Settlements of the Malayan Peninsula have a distinct postal history from the other Malayan areas.

Mail was originally handled privately by passing ships; the earliest known postal markings date from around 1806, used by a post office on Prince of Wales Island (now Penang). Service was regularized in 1837 by the Indian Post Office Act ; postage stamps of India were used from 1854, the Settlements being considered part of the "Bengal circle", then from 1861 part of the "Burma circle". The cancellations used were B109 at Malacca, B147 at Penang, and B172 at Singapore.

When the Settlements became a crown colony in 1867, they had to begin issuing their own stamps, not least because they adopted a currency based on 96 cents to a silver dollar. Beginning on 1 September 1867, nine types in the existing stocks of Indian stamps were overprinted with a crown and a new value in cents. Stamps printed by De La Rue for the Settlements started arriving in December; they are notable for a prominent white frame around the profile of Victoria, inscribed "STRAITS SETTLEMENTS POSTAGE". The set of nine values, 2c to 96c, appeared gradually, with the 30c value not being issued until 1872.

Shortages from 1879 through 1882 forced the production of various surcharges, until new 5c and 10c stamps arrived in January of 1882. This was not the end of difficulties, and additional surcharges appear regularly until the end of the century.

In 1892, stamps of the key plate issues went on sale, a number of them printed in two colors. A notable feature of this issue is the $5 stamp issued in 1898.

The accession of King Edward VII necessitated new stamps in 1902, still in a key plate design, supplemented in 1903 with a design using oval vignette. In 1907, the remainder of the stamps of Labuan were overprinted "STRAITS SETTLEMENTS.", some with new denominations, and in 1910 new large-format stamps appeared with values of $25 and $500 (although available for postage, their usual use was fiscal).

George V replaced his father on stamps beginning in 1912, reusing frames and only replacing vignettes. These stamps were overprinted in 1922 to mark the Malaya-Borneo Exhibition . The Settlements also joined in the Silver Jubilee for George V in 1935.

The last issue of the Settlements was for George VI beginning in 1937.

In March 1942, Japan issued stamps for their occupation, made by overprinting existing stamps with Japanese inscriptions.

After the Japanese left in 1945, the British military administration issued provisionals by overprinting Straits Settlements stamps with "BMA / MALAYA". These were available everywhere in Malaya, and used until regular postage stamp printing was organized, as late as 1951 in the case of Kelantan.