This paper investigates the institution of neutrality from the perspective of Siyar, “Islamic International Law.” It analyses relevant views of contemporary Muslim scholars, particularly with reference to the division between the “abodes of Islam” (dar al-islam) and the “abode of disbelief” (dar al-kufr), and their discussion on a third abode, the dar al-‘ahd or “abode of the covenant.” The paper concludes that temporary forms of neutrality may be acceptable under Islamic law under certain conditions without a re-interpretation of the classical theory of external relations and the division of territory.