Purpose – To address this gap, this study situates the halal industry within the broader transformation of Islamic sustainable banking by examining how maqasid, technological infrastructure, and green economy alignment collectively shape sustainable value creation in the Islamic finance ecosystem. Method – Using a systematic literature review (SLR) following PRISMA protocols, 2020–2024 studies were identified, screened, and synthesized through a structured multi-stage process involving database triangulation (Scopus, WoS, Dimensions), keyword clustering, thematic coding, and cross-validation to derive four core analytical themes: maqasid as a normative foundation, halal industry transformation as a real-sector driver, technology as compliance infrastructure, and green economy alignment toward SDGs integration. Findings – Findings reveal that maqasid provides a coherent ethical framework for integrating sustainability into governance, while the halal industry acts as a catalyst for real-sector expansion that stimulates demand for sustainable Islamic financial products. Technology enhances shariah–sustainability compliance through digital auditability, blockchain-based transparency, and algorithmic risk management. Implication – Theoretically, this study proposes an integrated Islamic Sustainable Banking Model that connects maqasid-based governance, halal value chain development, and green financial instruments. Practically, the findings offer strategic implications for regulators and Islamic financial institutions to harmonize shariah–regulatory frameworks, scale green sukuk and waqf-linked financing, strengthen digital compliance systems, and advance Islamic finance as a driver of national and global sustainability transitions
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