The labor theory of value is a seminal economic theory of considerable importance. It seeks to answer the fundamental question of what is the element that determines the value of a good. This theoretical framework, developed by prominent classical economists such as Adam Smith, David Ricardo, and Karl Marx, posits that labor constitutes the exclusive source of value. In contrast, Islamic economics places greater emphasis on the ideal of an economic order free from exploitation by evaluating the relationship between labor and value on the basis of justice. While Smith and Ricardo conceptualize labor as a mere instrument of production, Marx elevates labor to the crux of class struggle. Ibn Khaldun’s seminal work, “The Muqaddimah,” which was written centuries before the advent of modern economics, expounds on the concept of labor and its role as the foundation for value creation and profit. Islamic economics seeks to regulate the labor-capital relationship on a fair basis. In contrast to the capitalist system, Islamic economics places significant emphasis on the equitable distribution of resources and the promotion of social balance devoid of exploitation. This entry aims to provide a comprehensive comparison of the labor theory of value within the context of various economic approaches. It also undertakes a thorough analysis of the historical and conceptual evolution of the theory.