Ijtihad is the Islamic principle through which reformation is possible, particularly in the releam of jurisprudence and contemporary issues. Iqbal has utilized this apparatus in order to revive Islamic thoughts and to resolve the contemporary issues. This article is an attempt to highlight Iqbal's opinion about Ijtihad, its scope, eligibility of the mujtihid and methods of ijtihad. However, even after passing almost two third of the century, the majority of Ulema have not only the misconception about the vision of Iqbal but also blaming him. However his work proved his vision, intellect and the possible ways guided by him to solve the present issues.