Transformative theology was established as a critique of social inequalities. The inequality was due to the pettiness of thinking, ignorance, and closeness to understand the teachings of his religion. Adopting transformative theology to Islamic education is expected to be able to provide solutions to various social problems as a result of modernization. This paper discussed the contribution of transformative theology to the development of Islamic education. The study of transformative theology in Islamic education can be seen from the perspective of reality and partiality of social problems: poverty, ignorance, and backwardness. This implied the emergence of 3 (three) pedagogical orientations; Islamic education thinking, institutional development, and Islamic education practice. The thought of Islamic education created the concept of Islamic education toward the development of modernity. The institutional development produced the quality of human resources and become a choice for educational society. Educational practices have an impact on educational policies and educational activities for solutions to various social problems.