The problem to be looked for  the answer in this study is the process of applying Islamic business ethics in buying and selling transactions in the traditional market of Pendopo, Empat Lawang. This research uses a qualitative approach to the case study method, which emphasizes efforts to obtain information about the status of a picture of phenomena, as well as to draw the meaning of a desired problem with respect to a case. The data collection technique used triangulation with interviews, observation, and documentation study. The results of the study conclude that the understanding of traders in the traditional Pendopo market towards Islamic business ethics, traders have not maximally understood Islamic business ethics, both the expression of feelings that are reflected, the pattern of application of business ethics in Islam which emphasizes trading ethics in buying and selling transactions in the Pendopo market. It has been running quite well without being overtaken by the traders, there is still a lack of awareness of the traders about raising prices by hoarding goods with the aim of seeking high profits from consumer needs in general. traders feel they can compete so that their merchandise can sell cheaply and cheerfully. The measurement of the application of business ethics in Islam carried out by the seller / trader shows that not some traders have implemented business ethics in Islam. Based on these findings, it is suggested the need for periodic counseling to increase the insight and knowledge of traders to be aware of the meaning and benefits of business ethics in Islam which emphasizes trading ethics in sales transactions. the role of the community in this case is that buyers are also required to understand and understand the business ethics system in Islam