Purpose:The general objective of this study is to explore the potential of Islamic Gift Economy in relation to sustainable development at the local level. This paper is therefore, highlights conceptually some preliminary insights on how the Sustainable Development (SD) and the Islamic Economy can be incorporated into a broader sustainability framework involving the three pillars of economic, social and environmental (ESE) sustainability.Methodology: This paper is abouta preliminary conceptual exploration into the meaning, and potential of Islamic Gift Economy in enhancing sustainable development at the local level. Main findings:The central argument of this article revolves around the idea that Islamic Gift Economy with its focus on social justice ('adl), balance (mizan), and common good (maslahaha'mmah)can be an alternative economic paradigm and development model in this post-capitalist development agenda. Application of the study:This study may be beneficial to policy makers from national to local/community level on how to enhance local/village economy through Islamic Gift Economy.Novelty/Originality of the study: This paper intends to propose an integral framework on the relationship between IGE and sustainable development at the local level. Theoretical and policy implications, and opportunities for future research were also highlighted.

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