The present study is about the religious tourism and its economic impact which was researched in Bari Imam Shrine of Islamabad. This study used qualitative research strategy for data analyses. It was analyzed that Bari Imam Shrine is one of the major economic sources for the locales. Locals earn money but they have different economic sources like taxi drivers have their own economic source, hoteling and shops have their own economic source, but all are dependent upon the tourists who come for the performance of the rituals from the far-flung areas. These tourists contribute in the local economy especially in the local markets. These local markets can fulfill the demands of tourists all those goods which are demanded by the religious tourists, like food, flowers, taxies, remembrance items and others. Secondly, government from time to time banned the tourist from the Imam Bari Shrine due to security issues, these security threats have great influence upon the local economy especially upon the local marketing. People want peaceful environment and some facilities for religious tourists in the Bari Imam because if peaceful environment will not be provided then the local economy can go to its poorest conditions. Moreover, peaceful environment is important for both, for local people and for the tourists. Supervisor:- Dr. Zulfiqar Ali Co-Supervisor:- Mr: Muhammad Aqeel Anwar