AbstractThis study investigates the macroeconomic determinants of money demand (M2) in Malaysia over the period 1980 to 2023. Using the Autoregressive Distributed Lag (ARDL) approach, the analysis explores the relationship between money demand and key economic variables, including Gross Domestic Product (GDP), interest rates (IR), inflation (INF), and the shadow economy (SE). The study ensures stationarity through unit root tests and examines long-run relationships using cointegration tests. The results reveal significant dynamics in both the longrun and short-run, with inflation and the shadow economy identified as key drivers of money demand. These findings highlight the role of both the formal and informal sectors in influencing monetary policy...