This study aims to analyze the resilience of traditional markets in the face of modern market expansion and examine this phenomenon from an Islamic economic perspective. This study employed a qualitative approach with the Systematic Literature Review (SLR) method, referring to PRISMA guidelines for journals from Sinta, Scopus, Spinger, and Garuda published between 2018-2026. 19 journal articles were collected and analyzed. The research results show that the expansion of modern markets has had a significant impact on the existence and performance of traditional markets, marked by a decline in visitor numbers and trader turnover, as well as weakened competitiveness due to unequal access to capital, technology, and management. Nevertheless, traditional markets remain resilient through social capital, price flexibility, geographic proximity, and the cultural values inherent in community economic activities. Furthermore, adaptability through improved service, product diversification, and the use of simple technology are important factors in maintaining the sustainability of traditional markets. From an Islamic economic perspective, competition between traditional and modern markets must be understood within the framework of Maqasid Sharia, which emphasizes the principles of justice, balance, and welfare. Therefore, policies are needed that can create a balance between the efficiency of modern markets and the protection of traditional markets as part of a people's economy. This research contributes to enriching the literature on Islamic economics and provides recommendations for strengthening traditional markets sustainably and equitably.
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