UKIP's election manifesto pledge to ban full-face veils worn by some Muslim women "got in the way" of other issues, Neil Hamilton has said.
The party's leader in the assembly said he was unhappy with the policy because it "blanked out everything else" in UKIP's general election campaign.
He said it would now be part of a post-election "policy review".
Former leader Nigel Farage has warned UKIP against becoming "anti-Islam".
UKIP is about to embark on its third leadership election in a year after Paul Nuttall resigned following the party's disastrous general election result.