Sayyid Abu'lA'la Mawdudī discusses the various aspects of the Islamic economic system. He also explains the history, characteristics, merits and demerits of various economic systems such as Feudalism, Capitalism, Socialism and Fascism in a comprehensive and rational way. He puts forward that Capitalism emerged after the Feudalism, when the Renaissance took place in Europe, scientific inventions and industrial development gave rise to the bourgeoisie. Capital has a vital part in this system. Due to inventions and innovations, modern techniques of producing merchandises were promoted. Production of goods on large scale reduced the cost of production. The principle of specialization was adopted. However, this system had demerits such as misuse of individual possessions, advertising, artificial increase in commodity prices, tactics of brokers, usury, extravagance and concentration of wealth in a few hands. Nowadays, these same defects are part of Capitalism.  Moreover, he explains the characteristics of the economic system of Islam in a comprehensive way. The purpose of writing this research paper is to describe Sayyid Mawdudī point of view about Capitalism and its analysis in Islamic teachings. The research paper followed the descriptive and analytical methods.