Muslim scholars have contributed enormously to the concept of welfare State. Among them Shah Waliullah is the rising sun who was born in South Asian sub-continent in the 19th century. He was holding the firsthand knowledge of Quran and Hadiths, the first primary sources in Islam. Shah Waliullah's point of view regarding welfare state occupies central theme in his works. His basic concepts like equality, justice, anti-usury, and rights of working classes, espoused with responsible governance, are the pillars of the edifice of the Islamic polity. To purge the Muslims out of dogmas and channelize their energies in compliance of the true religion, Islam, Shah Waliullah has left deep imprints on modern mind. His solutions to the prevailing ills of the society can be found in his works and thought. This paper is aimed to present Waliullah's thought on establishing a happy society by curbing the inequality in the socio economic conditions of the Muslims. Historical descriptive approach is adhered to investigate the ills and present solution thereof.