Governance refers to the set of laws, rules, processes, and mechanisms through which social relations are managed and organized. Social institutions, as stable structures shaped by beliefs, values, norms, and social traditions, play a fundamental role in guiding and regulating social interactions. This study examines the Prophetic model of governance based on an Institutional System. The central hypothesis is that whenever the teachings of the Noble Qur’an, in accordance with the Prophetic Sunnah and with the broad acceptance of the Muslim ummah, are implemented in practice, a network of social institutions grounded in those teachings will emerge, and Islamic governance will be realized through the interconnectedness of those institutions. Following a conceptual analysis of the terms governance and institution, this research adopts a historical-sociological approach to analyze the model of Islamic governance during the lifetime of the Prophet Muhammad (peace be upon him). The findings of the study reveal that the Prophet, through the promotion of Islamic social traditions, reformed or established institutions such as the family, education and purification, the mosque, jihad, endowment (waqf) and charitable giving (infāq), enjoining good and forbidding wrong (amr bi-l-maʿrūf wa nahy ʿan al-munkar), Friday prayer, pilgrimage (ḥajj), and others. All of these institutions, under the divine leadership of the Imamate, guided social behavior and interactions toward the realization of ḥayāt ṭayyibah (the good life) and worldly and eternal well-being. Thus, Islamic governance, grounded in divine laws and principles, is manifested through processes and mechanisms operating within the dynamic interplay of elevated institutions.