Al-khumus is a religious tax in Islam mandating individuals to allocate one-fifth of their surplus wealth to specified beneficiaries. However, the increasing financial pressures on higher education institutions have required the investigation of various funding sources to support and improve research activities. The objective of this study is to review the potential of al-khumus for research funding in higher education. A systematic approach was utilised in this review analysis to achieve a thorough understanding of the existing literature on al-khumus and its potential as a funding mechanism. The review analysis revealed innovative strategies in harnessing al-khumus for sustainable research funding in higher education, namely: (a) establishing al-khumus research grants; (b) creating al-khumus-funded research centres; (c) implementing al-khumus-based scholarships for research students; (d) organising community-focused research initiatives; and (e) developing al-khumus-funded research partnerships. In conclusion, this study underscores the potential of al-khumus as an effective funding mechanism for higher education institutions, especially in contexts that align with Islamic values and principles. Future research should concentrate on several critical areas to further investigate the potential of al-khumus as a funding mechanism for higher education institutions