This study provides a comprehensive examination of zakat collection and distribution mechanisms within the framework of Islamic finance. Zakat, as a pillar of Islamic economic and social justice, plays a vital role in wealth redistribution and the alleviation of poverty. The research delves into historical perspectives, legal frameworks, and contemporary practices associated with zakat collection. Mechanisms such as traditional methods and modern technological innovations are explored, assessing their efficiency and transparency. Challenges in the collection process, including evasion and mismanagement, are identified, and potential solutions are discussed. The study also analyzes the impact of zakat distribution on targeted beneficiaries, emphasizing its social and economic implications. Case studies from various regions are presented to highlight successful models and lessons learned. The research concludes with insights into emerging trends and recommendations for enhancing the effectiveness of zakat collection and distribution in promoting social welfare and community development within an Islamic finance context.