Internet has influenced all aspects of modern man’s life. Younger generations have always been interested in using different features of online world. Youths are found to be active Internet users in Malaysia. The present study was carried out to understand how Internet can influence Positive Youth Development (PYD), and to identify the relationship between patterns of using Internet and Internet skill on PYD. The mediation effect of Internet use gratification among Malaysian youth was also investigated. A quantitative survey method was used to collect data from a total number of 440 students, from University Putra Malaysia using stratified random sampling. The results indicated the mediation effect of patterns of Internet usage and Internet use gratification with positive youth development (PYD). However, there is no mediation effect of Internet skill and PYD with the mediation effect of Internet use gratification. In addition, the relationship between Internet use gratification and the five dimensions of PYD (competence, confidence, caring, character, connection) proved to be significant. There is no moderator effect for ethnicity and marital status; however, it is significant for gender. As media has proved to impress different aspects of the youth’s lives, it is recommended to pay more attention to its crucial role in the formation of positive development in further research. Media experts have the potential to use the youth’s capabilities in positive ways.