This paper deals with an important aspect of contemporary Islamic Law which is being increasingly practiced due to the advent of modern application of Islamic Finance. Muzār‘ah (crop sharing) agreements have evolved as an important tool to address the need of creative and innovation applications of Islamic Law. Hence such agreements provide a wide scale application on the one hand while posing serious challenges on the other hand. These challenges exist in various forms which require a detailed comprehensive study. Moreover the legitimacy of these contracts are needed to be discussed thoroughly. The study aims to show that crop sharing contract has a great economic potential which not only establishes the economic wealth of the country but it also enables it to earn livelihood by exporting agricultural production. In addition to this it also serves the society at micro and macro levels.