Islam proposes a society of righteousness and justice. Islam caters to people’s need for peace and serenity and therefore takes every legal measure to safeguard the society against disruptive elements. The notion of punishments in Islam is not the primary laws. They are only to the declaratory laws which are always enforced as a condition or sequence an as a vindication of the primary structure of Islamic society. Criminal behaviour is not tolerated in the Islamic order of society. Islam pursues its social objectives through reforming the individual in the first place. Shariah law has a role for individual rights, but those individual rights are exercised within a system that is primarily concerned with human relations. Islam does not disregard the relative responsibility of the criminal and the role of circumstances in commission of crimes. Islam stands out distinctly among the religions of the world in that its punishment and retribution laws are applied under exclusive rules and regulations. Islam ensures proportionality between crime and punishment. Islamic concept of punishment is perfectly justified as Islam not only takes every possible measure to prevent crimes but also inculcates commendable moral scruples in the criminals.The Islamic Criminal law has approved many crimes with providing deterrent, reformative, retaliate and other kinds of penalties in order to uphold peace in the society and reform the criminals. This paper deals with Islamic judicial system and criminal law to find out its significance and relevance to modern time.