The existing literature on Islamic economics has not undergone any of the processes of verification or falsification. It is mostly restatement of the postulates as found in the Qur’an2 or hadith. The literature on methodology of Islamic economics is either superfluous, or ambiguous or confusing. It does not help in transforming the Islamic economic teachings into a social science. For developing Islamic economics as a social science, we must understand the primary sources in a contemporary context; formulate hypotheses based on that understanding and present these hypotheses for validation through testing. The paper illustrates the proposed methodology with some examples. For making this methodology a going concern, several basic steps would be required. The paper enumerates those steps also.