This paper investigates the question of whether the phenomenon of Islamic finance or Islamic Banking1 is truly globalizing, that is, spreading as a universal alternative to conventional finance and banking or whether the proponents of such a view are spreading a myth or are themselves simply deluded by their own enthusiasm. The paper addresses various aspects of the globalization of Islamic finance, among others, the issue of the rise of Islamic banking in the West, Islamic jurisprudence and finance, global standards and integration of Islamic finance, and obstacles facing Islamic finance’s integration and growth into the global financial system. One central question asked in this paper is whether the globalization of Islamic finance as a system is even possible, and if so how can it take place?