Computer users are continuously facing ethical challenges as society adopts new and increasingly complex tools and technologies. These ethical challenges can be managed by Islamic code of life. In this paper, we have studied and tried to identify, how computer affects the ethical issues of the society. In this regards, we have traced some highly related issues to the ethics of computer usage, namely – misuse of time, honesty and integrity, privacy, security, intellectual property right, and computer crime. We have also tried to explain these issues in the light of Qur’an and Hadith. At the end of this paper, we have also suggested some measures that can help in promoting proper use of computer facilities by the Muslim masses without compromising the Islamic principles.