The sugar industry played a significant role in the colonial economies of Indonesia and the Philippines. Growing the same commodity for the global market, the conditions under which the sugar industry operated in the two places were quite different. Using historical methods and drawing upon secondary sources, this article compares the colonial sugar industry in Indonesia with particular reference to Java and the Philippines between 1890 and 1940. Unlike the case of Indonesia, where the sugar industry operated in densely populated lowland areas, the Philippine sugar industry was established in a sparsely populated region. However, the sugar producers in the two countries took various measures to make their ventures more efficient and competitive. This article will outline broadly the early development of the sugar industry in Java and the Philippines, followed by a discussion on the choice of production technology and the performance of the sugar industry in the interwar period to provide a better understanding of the different development of the sugar industry in Java and the Philippines. The sugar industry in Java was more successful in improving its productivity and efficiency, making the industry more competitive than the Philippines. However, the sugar industry in the two countries had different destinies when the global crises hit hard in the 1930s. Only because of the preferential treatment obtained in the American market did the less efficient sugar industry in the Philippines survive during the Depression. Meanwhile, Java's more efficient sugar industry collapsed due to the unfair protection policy in the world sugar market.