The transformation of halal lifestyle from mere religious compliance into a part of popular culture has created new dynamics in the consumption preferences of young Muslim consumers. This study aims to analyze the meaning, practices, and rationality of halal consumption among students at Institut Islam Al-Mujaddid Sabak from the perspective of Islamic economics. The study employed a descriptive qualitative field research approach involving 10 students from different study programs and academic levels selected through purposive sampling. Data were collected through semi-structured in-depth interviews, participatory observation, and documentation, and were analyzed through data condensation, thematic coding, data display, and conclusion drawing and verification. Data trustworthiness was strengthened through source, technique, and time triangulation. The findings show that students’ halal lifestyle has developed into a broader way of life encompassing halal food and cosmetics, the use of Islamic financial services, and ethical conduct in daily life. However, a gap was identified between halal awareness, halal literacy, and consistency of practice, particularly due to limited product accessibility, peer influence, social media trends, and symbolic consumption. From the perspective of Islamic economics, students’ consumption preferences tend to reflect the fulfillment of maslahah through the hierarchy of dharuriyyah, hajiyyah, and tahsiniyyah, while also relating to the protection of hifz al-din, hifz al-nafs, and hifz al-mal. This study proposes a halal consumption rationality model for young Muslims consisting of religious awareness, halal literacy, social and digital influence, maslahah evaluation, consumption decision, and self-control. The model demonstrates that Muslim youth consumption rationality is determined not only by the halal status of products, but also by their ability to assess maslahah and control tendencies toward israf, tabdzir, and halal hedonism.