As the charismatic leader of the Islamic Revolution and the architect of the doctrine of Velayat-e Faqih, Khomeini left a profound imprint on modern Islamic political and economic thought. Hailing from a family with deep roots in the Shiite tradition, Khomeini pursued specialization in jurisprudence, philosophy, and wisdom during his religious education in Qom. His early works emphasized social justice and Islamic governance. It was in the 1960s that he first began to make his mark on the political scene, through his criticism of the Shah’s regime, and it was subsequently, following the 1979 revolution, that he became both Iran’s religious and political leader. Following the revolution, Khomeini’s economic policies were shaped within the framework of Islamic principles. Significant measures implemented during this period include the nationalization of banks, the establishment of an interest-free banking system, and the delineation of oil revenues as the “common property of the people,” in contrast to Western capitalist models. However, the Iran–Iraq War (1980–1988), international embargoes, and the centralized structure of the government impeded the realization of these economic objectives. Although Khomeini’s Bûnyâd (foundation-like institutions) played a critical role in the control of economic resources, their opaque structure led to criticism of corruption and inequality. The constitutional institution of Velayat-e Faqih, as theorized by Khomeini, entwined the judiciary, legislature, and executive with the authority of the religious leader, while the Islamic Banking Law (1983) brought the financial system in accordance with Sharia principles. Nevertheless, the failure of the revolution to deliver on its promises of reducing income inequality, unemployment, and inflation is indicative of the shortcomings of the regime. In the post-Khomeini era, these policies were maintained, but the tension between the need for global integration and Islamic principles persisted. Khomeini’s profound impact on Iran was twofold: through his revolutionary rhetoric and his theoretical contributions to Islamic economics. However, the economic stability he sought remained elusive, due to contradictions in practice and external dynamics. His legacy remains a significant subject in academic and political debates, exemplifying the tension between Islamic governance and modern state practices.