Numerous initiatives have been taken to alleviate poverty globally. Particularly in OIC member countries, which is the focus of this study, some of these initiatives have produced marked improvements, others have shown only incremental progress. Amidst these challenges, income inequality has now presented itself as an urgent problem that would distract any poverty reduction effort. Income disparity between the haves and have-nots in OIC countries has increased, thus dispelling the perception that the bigger the economic cake, the richer and happier the population would be. As such, an effective mechanism for distributing the cake more equitably must be put in place so the world can be assured that any economic growth is fairly distributed across the society. In this case, the United Nations Development Program (UNDP) has produced a Human Development Index (HDI) as a way to measure key dimensions of human development. While this index helped in surveying the average achievements of human development, it is still insufficient according to the Islamic perspective. In this paper, a suggestion is made to develop an Islamic Human Development Index (i-HDI). The index is all-inclusive and comprehensive for studying human development based on five dimensions derived from the Maqasid Shariah for alleviating income inequality.