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This study employs descriptive qualitative method with a case study. This research is conducted in Pojok Village, the Subdistrict of Campurdarat, Tulungagung. The study objectives are: (1) to analyze the allocation of the Village Fund in 2015 conducted by the village government, (2) to create alternative models of the allocation of Village Fund in the Islamic Economy perspective. This study uses primary and secondary data. Data have been obtained and tested its validity using triangulation of data sources. Furthermore, data were analyzed using the model of Miles and Huberman; data were selected, presented and verified to conclude and answer the research questions of this study. The conclusions of this study are: (1) the implementation of Village Fund in 2015 only reached 29 percent of the total 100 percent of the regulation, (2) there are several obstacles in the implementation of Village Fund, (3) Alternative Implementation for Village Fund in Islamic Economy Perspectives is with the approach of Maqashid Syariah formulated in a roadmap for 4 (four) years period.

The Implementation Potential of Village Fund in Islamic Economic Perspective with The Instrument of Maqashid Syariah