Influenced by abnormal situations afflicting Islam world, and also having a deep awareness and understanding of intellectual principles of west and east, Allameh Iqbal Lahori (1256-1317) saw himself committed to the Muslim’s faith. The main questions which the paper attempts to provide answers for include: what factors are known for Allameh Iqbal to be the causes of the Muslim’s underdevelopment? What are his proposed solutions for this underdevelopment? Is it possible to interpret the present realities in the contemporary Muslim countries by Iqbal’s thoughts and whether it is possible to find Iqbal’s ideal society in east or not. The theoretical framework of the study is taken from dependency school especially Paul Baran`s opinion. The study has a library method. The factors of the Muslims’ underdevelopment are divided into two internal and external parts and the solution strategies divided into two micro and macro levels.