This article examines the relationship between democracy and Islamic principles through an analysis of the Wilayat al-Faqih (Guardianship of the Jurist) system in Iran — a topic of particular importance amid ongoing debates about the compatibility of the Iranian political system with the principles of modern democracy. The core issue lies in reconciling Islamic principles such as allegiance and consultative assembly with democratic concepts such as popular participation and the separation of powers. The study aims to analyze the role of Wilayat al-Faqih in promoting religious democracy. It concludes that the Wilayat al-Faqih system represents a model that integrates popular democracy with religious principles, thereby achieving a balance between divine sovereignty and the nation’s right to political participation. The study further finds that allegiance in Islam resembles modern elections in the process of selecting a leader, and that consultative assembly serves as a supervisory mechanism to prevent despotism. The comparative-analytical method was adopted, combining the study of Islamic religious texts with modern political systems.