Consumption activities driven by socio-psychological issues or ‘compensatory consumption’ have gained popularity among Marketing researchers in recent years. However, decades after its introduction, compensatory consumption has not been thoroughly discussed in the religious context. This dissertation aims to investigate compensatory consumption in the context of religions, most notably Islam. The majority of respondents in this study were Muslims, both as majority and minority groups. Previous research has shown that understanding Muslim spending patterns and consumption motivations are critical for avoiding marketing myopia. The researcher employed both quantitative and qualitative methods to reveal the mechanism behind religious compensatory consumption. This dissertation connects religious compensatory consumption with “moral” consumption concepts, such as green consumption, to provide a more comprehensive explanation of compensatory mechanisms. In total, this dissertation presents five articles that have been published in reputable journals. The results of this dissertation are expected to refine the theory of compensatory behaviour and give a framework for future research in a similar area.