: Islamic Law in the Pancasila State. According to al-Mâwardî and Ibn Taymiyyah the original concept of applying Islamic law lies on the existence of Islamic state. But, the concept of the Islamic state varies from time to time. Thus, the final and real concept always remains unclear. It can be said that in practical sense, Islamic law can be implemented anywhere in accordance with the socio-cultural context and its progress and development. The Republic of Indonesia is a good example of how shariah can be applied. Despite the State remaining relatively secular, in essence, the idea of the application of shariah is not strictly excluded. Nevertheless, these concepts should be debated in public until it is widely known that the Pancasila state is limited in accommodating shariah on the one hand and how shariah can be practised freely by the Indonesian Islamic society on the other.