A spokesman for the Perth Airport said, "The pilot identified a technical issue with the engine".
A number of passengers on board the budget flight said the plane suffered an "engine seizure" causing it to shake.
"It was literally like you were sitting on top of a washing machine", he told ABCradio.
Earlier this month an Airbus A330 belonging to China Eastern Airlines was forced to make an emergency landing in Sydney after a huge hole appeared in one of its engine casings.
AirAsia is investigating the incident, but says there is no indication it was an engine issue.
After safe landing, AirAsia airport helpdesk offered alternative flights and accommodation to passengers.
Footage taken by Stevens, the man in glasses in the video above, and his friend shows seats and passengers shaking rapidly and a rattling sound.
Passengers on the airplane said that the shaking went on for two hours as the airplane headed back to Perth.
No one was injured during the incident, though it seemed some passengers were struggling after getting off the plane.
With terrified passengers in the brace position, the aircraft landed safely at 10am, three hours after it had left.
"It was really shaky, very scary", the passenger, Damien Stevens, said, according to CNN. The passengers had praised the Pilot for taking a quick call on the situation and returning the flight.
AirAsia said in a statement that the flight had been forced to turn back due to a "technical reason".
Once they landed, they were told a blade had sheared off the left engine.