A political system is a system of politics and government coming into being on the basis of man’s social needs. As the greatest Islamic philosopher, Farabi has expressed his opinion on the need for a political system, its structure and the issues related to it. At first, Farabi divides sovereignty to “utopian” and “non-utopian” and he holds that the utopian society should be led by an individual who is the most perfect and most knowledgeable of all the individuals of the society. In this system, virtues are the axis of social classification and gradation and that human and moral convictions and common beliefs determine the boundaries of a political system. The process of power formation acceptable to Farabi stems from two sources e.g. divine guidance and civil obedience. Therefore, the two models of government namely autocracy and democracy are not accepted by this Muslim scholar. He considers everything that relates to collective affairs and the worldly as well as heavenly prosperity of citizens to be within the realm of government power. In his opinion, obeying good and learned leaders is a duty of citizens and that disobedience on their part is mean and equal to misguidance.