During the early sultanate period, although Siam claimed that Terengganu was part of its dominion resulted from the Bunga Emas and Bunga Perak sent by the latter in every 3 years, it was said that the gift was actually a present of courtesy and token of friendship but not tributes as to prevent the interference of British in the state¡¯s administration. Siam handed over Terengganu to British in 1909 after signing the Bangkok Agreement but this was rejected by Terengganu. Another agreement was then signed between Terengganu and British in 1910 and thereafter Terengganu officially recognized the appointment of a British Representative with the condition the British agent was not empowered to interfere in the administration of the state. The British who was not satisfy with their status continued to look for ways to get involve in the internal affairs of the state. In 1919, their attempt finally succeeded. Another agreement was signed between British and Sultan Muhammad. Terengganu officially accepted a British advisor, seek and follow his counsels in all administrative matters except religion issues.

Nevertheless, the involvement of British had brought to resistance from the people. The patriotic awareness had spread among the state and led to the establishment of Association of Young Malays (Kesatuan Melayu Muda, KMM) in 1937. A series of campaigns was held by KMM during 1940-1941. In 1942 when the Japanese took the control of Peninsular Malaysia, KMM was dissolved and Terengganu was under the administration of Japanese Army until 1943 when the governance authority was transferred to the Thai Army. Thai administration remained in Terengganu until Japan conceded defeat to the alliance in August 1945, then it was again back to the hand of British until the Federation of Malaya achieved her independence on 31 August 1957.