The station is located in the southern neighborhood of Malha, across from the Jerusalem Shopping Mall, Pais Arena and Teddy Stadium.

Service to the station has been suspended entirely since March 2020 due to poor usage combined with the economic impacts of the COVID-19 pandemic, and it is unclear if or when it will resume.

Jerusalem Malha was opened on April 9, 2005, when the historic Jaffa–Jerusalem railway was restored after being out of service for six years.

Since February 5, 2006, intercity bus routes to Gush Etzion and the Hebron area stop at Malha station on their way from the Jerusalem Central Bus Station to their destination via Begin Boulevard.

There are conceptual plans to extend the new Tel Aviv–Jerusalem railway from Jerusalem–Yitzhak Navon to Jerusalem–Malha along an underground route beneath Jerusalem; for that reason, Malha station was built as a thorough station at a surface elevation equal to that of Jerusalem–Navon's underground tracks and platforms.