As the dynamic cognitive part of the Shari’ah, fiqh is inclined to adapt to new challenges by adopting new methodologies and approaches. One such approach that has emerged recently is ‘applied Islamic ethics’. This new ethical approach is essentially based on the principles of the higher objectives of Shari’ah (maqasid al-shari’ah) and attempts to anchor Islamic jurisprudence in its ethical dimension, which has been significantly neglected for some time. This article attempts to analyse the new approach by surveying its historical developments, its possible methodologies, the benefits emanating from its application and the possible challenges it needs to face.