Islamic finance, rooted in Islamic normative principles, offers alternative financial intermediation shaped by its distinct ontology, epistemology, and axiology. In the first part of this chapter, we explore the philosophical foundations of Islamic finance. Tawhid, or unity of God, as the foundational axiom of the ontology of Islamic finance, is articulated as complementarity between all the stakeholders within the systems of an Islamic order, also affecting the financial system. As an articulation of tawhid, the complementary relationship of Islamic finance with other systems (e.g., law, education) within the same order, at the epistemological level, differs from other financial intermediation systems due to its reliance on revealed knowledge primarily, along with empirical and rational knowledge. The substance of the relationship among the systems in an Islamic order is constituted by substantive morality shaped by normative principles of Islam to achieve the higher objectives of Shari’ah, namely Islamic law. In the second part, we evaluate the contemporary financial system through the philosophical foundation to reveal to what extent Islamic finance diverges from the contemporary financial system. As articulated in the second part, the contemporary financial system operates in unity with capitalist principles, resulting in a paradigmatically different financial system. In operating in the capitalist market system, Islamic financial institutions are grafted in their objective function to prioritize pragmatism, growth, and integration with global financial markets over their initial ethical and social goals. This is due to following an eclectic path to operate and compete, leading to Islamizing conventional products and services and contenting with compliance with Islamic law instead of offering alternative institutions, products, and services based on the higher objectives of Shari’ah.