The aim of the study is to provide an assessment of the refugee’s encampment and national security in Malawi. The study argues that refugee’s encampment practice was implemented during the one party era and currently it is being implemented in the democratic political dispensation with the reason that refugees are a threat to the national security. However, the refugee’s encampment has no legal basis in the 1989 Refugee Act. Malawi once hosted Mozambique refugees who stayed in local communities with people. Then Zambia, Zimbabwe and Mozambique accused Malawi of harbouring RENAMO fighters, eventually Dr. Hastings Kamuzu Banda’s Government flashed all refugees in fear of sanctions and he made a call to have UNHCR operational. In 1987 he ratified the 1951 refugee convention and during that time he made reservation to article 26 which allows refugees to choose place of residence and freedom of movement in the host state. The reservation put limitation to refugee’s freedom of movement and that all refugees should stay in the camps. The limitations are still being upheld by the Government of Malawi to date. The study adopted qualitative approach. It involved interviews with key respondents from the Ministry of Homeland Security, local leaders, UNHCR and refugees both in Dzaleka Refugee Camp and those around area 23 and Mchesi in Lilongwe City, and desk research. The findings of the study shows that the refugee do not compromise national security in Malawi but has the potential to, as some perpetrators of violence follow those who fled war and connive with Malawian with the intention to kill them, which by the end of the day, they leave dangerous weapons with Malawians who uses to compromise the national security and public order.