The Islamic Academy was set up in 1983 in affiliation with the Islamic Academy of Cambridge set up by the Late Professor Syed AN Ashraf. It conducts research on Islamisation of knowledge or education and develops academic programs leading to the degrees of MA, M. Phil and Ph.D. It arranges workshops, seminars and conferences and publishes books , and academic journals to generate and disseminate ideas and device the means of implementing them.

It also awards stipends to the M.Ed, students to help them conduct research. It recommended History, Culture and Heritage of Bangladesh and Basic Foundation of Islam as compulsory studies for the students of all the departments/Institutes.