This study was undertaken with two main goals. Firstly, the study aims to identify the factors that affect the use of social networking sites (SNSs) in e-learning, particularly among students and lecturers in higher learning institutions in Malaysia. Secondly, the study also intends to design and develop a social e-learning tool based on the identified factors. The findings revealed factors such as Social Networking, Ease of Use, Convenience and Ease of Use influence the use of SNSs in e-learning. Dissatisfaction towards current e-learning platforms (E-Learning Perception) also motivates the students and lecturers to seek alternative measures. In short, it can be concluded that the majority of the students and lecturers felt positively about the use of SNSs in e-learning. This was further proven with the implementation of Book2U, with the majority of the respondents perceiving Book2U as simple and appealing.