This entry provides an examination of the fundamental concepts and philosophical underpinnings of microeconomic theory from the vantage point of Islamic economics. It further explores the parallels and distinctions between conventional economic theory and its Islamic counterpart. The fundamental tenets of microeconomics—consumer and firm behavior, supply-and-demand mechanisms, and market dynamics—are reinterpreted within the Islamic paradigm, operating within the moral and legal boundaries established by Sharia law. In contrast to the conventional economic theory’s assumption of the “homo-economicus,” Islamic economics places significant emphasis on the concept of the “Homo-Islamicus.” Economic decisions, including consumption, production, and distribution, are guided by principles such as halal-haram, the prohibition of waste, Israf, and consideration of social welfare. The contribution of Islamic economics to microeconomics extends beyond the mere provision of a theoretical alternative; it underscores the moral and social dimensions of economic behavior. Theories of income, consumption, and production, as discussed in the works of early Islamic scholars, are being revisited in contemporary literature. These theories are being used to propose Islamic solutions to modern economic problems. In this context, the development of Islamic economics’ microeconomic theory must be pursued in a manner that is both more consistent and original. To that end, it is essential to establish a stronger link between Islamic norms and real economic behavior.