IQBAL'S CONCEPT OF EDUCATION IN DEVELOPING THE SENSE OF "KHUDI" Muhammad Zaid Malik1 ABSTRACT The concept of knowledge in Islam is unique. Its each field takes us closer to the Creator. Knowledge in the Muslim tradition is divided into two main divisions: beneficial and harmful. It is also divided into: ilmu ladyan & ilmul Abdan (normative sciences and physical sciences). The Holy Qur’an tells us three levels of certainty that the knowledge takes us to: ilm al-Yaqeen, ‘Ain al-Yaqeen, and Haqq al-Yaqeen (Knowledge of Certainty, Certainty of Sight, and Absolute Truth with Certainty). This paper will discuss the importance, virtues and benefits of Knowledge in the Islamic tradition. The sources and the objectives of knowledge will also be discussed. The paper will also shed light on how Dr. Iqbal wanted the Muslim Ummah, particularly the youth, to form their personalities according to the Islamic Knowledge and achieve the sense of “Khudi”. KEY WORDS: Khudi, Knowledge, Objective, Tradition.