Islamic finance has emerged as a significant alternative to the conventional financial system, especially in the post-pandemic era. This study examines the role of Islamic financial markets in achieving the Sustainable Development Goals (SDGs) in Indonesia, highlighting the opportunities and challenges in its implementation. Adopting the systematic literature review (SLR) methodology, this study synthesises 25 Scopus-indexed articles using the keywords Islamic financial markets, Indonesia, and Sustainable Development Goals (SDGs). The findings show that Islamic financial markets significantly contribute to the SDGs, particularly poverty alleviation, quality education, gender equality, and economic growth. However, regulatory constraints, limited public awareness, and operational inefficiencies persist. The study recommends regulatory reforms to address these barriers, increased stakeholder collaboration, increased public literacy on the advantages of Islamic finance compared to conventional finance, and integrated digital technology to improve the accessibility of Sharia-compliant financial products. Thus, Islamic finance can be a key driver of Indonesia’s sustainable, inclusive, and equitable economic development.