Islam is the religion of rahmatan lil’alamin that brings prosperity on earth. The majority of the Indonesian population are Muslims. However, the reality is that Islam has been hit by a number of negative issues due to a series of terrorism events in various countries in the world including Indonesia. The media also contributed to the rise in islamophobia. As a human society who need income for their survival, Muslim communities seen islamophobia causing issues for their businesses. The rising number of cases of discrimination against Muslim women is causing a disruption in their socio-economic life. In Indonesia, there is also discrimination against veiled women, as the veil is viewed as a social stigma, associated with religious fanaticism and even terrorism. This study used qualitative approach in the form of transcendental phenomenology research to ascertain the effect of islamophobia on profits for businesses owned by Muslims especially the veiled woman in several region in Indonesia, that is in Tulungagung, Pasuruan and Malang. The results of this study demonstrate that there was a community change, with less tolerance extended towards Muslims. However, this rising Islamophobia did not affect the profits as long as the seller provided quality products and quality services that are able to satisfy customers. Keywords: Islamophobia, Business Profit, Islamic Accounting