Discrimination of Muslims, like other forms of discrimination, is illegal according to United States law. This type of discrimination, which involves unfair treatment because of a person's religion, can classify as both race and religion discrimination, In many cases, a person becomes victim to discrimination because they are associated with Muslims, while they may not really practice the religion. It is not uncommon for all Arab-Americans to be perceived as Muslim based on their religion.

Either way, discrimination of Muslims is illegal, and may even lead to substantial legal penalties if taken to court. Examples of Muslim discrimination can be seen across the board, in settings ranging from employment to lending. In employment, individuals can be affected by discrimination when being hired, and discrimination may even extend to harassment after being hired. For Muslim women, in particular, some employees may be illegally required to remove their religious headscarf, the hijab. Individuals following the Muslim religion may also be illegally denied opportunities in other settings, such as refusal of housing or denial of a loan.