Behavioral finance is the study of the emotional and cognitive influences on investors’ decision-making processes. In contrast to traditional finance, the argument is that individuals do not always make decisions in a rational manner, but are influenced by cognitive biases and emotional factors. This approach provides more realistic models by incorporating the role of human psychology in financial decision-making. Islamic economics employs a distinct methodology. In essence, Islamic economics is a system based on ethical and moral values, which considers social welfare as well as individual interests. In this regard, the fundamental tenets of behavioral finance align with the notion of viewing humans not merely as economic entities, but also as “Homo Islamicus,” whose actions are shaped by ethical considerations.