Istihsan literally means "seeking the good" or "juristic preference." It is a principle in Islamic law where a scholar may deviate from a strict legal ruling in favor of one that better serves equity, justice, and public interest.
For example, if a strict rule causes hardship or injustice in a specific case, Istihsan allows an alternative interpretation that produces a fairer outcome — as long as it does not contradict core Islamic principles.
In Islamic banking, Istihsan is used to develop flexible financial products that meet modern needs while staying within Shariah boundaries. It enables innovation without abandoning fundamental Islamic values.