Islamic teachings about economic matters are very comprehensive. Economy is the back bone of every society. Honesty and fairness are very important factors for economic development of a country. Gharar is an important economic issue. Under present circumstances it is found frequently in many financial contracts. Uncertainty (Gharar) creates differences among the businessmen. Holy Qur’an and Sunnah of Holy Prophet (SAWS) have told that there should be no ambiguity in business affairs. It is very important to know the kinds of Gharar. Religious status of Gharar and its effects are described in this article. Basic elements of Bai‘ are Mubī‘ and Thaman. Any type of Uncertainty in Mubī‘ and Thaman will be Gharar. Six kinds of Gharar are explained in this research paper. Scholars of Islamic jurisprudence have given different opinions about this issue. Islam is a practical religion that is why jurists have told some exceptional kinds of Gharar which are unavoidable. There is dire need to address this important issue.