Era 4.0 is the era of the technological industrial revolution which will fundamentally change the paradigm of thinking and how to work. This paper aims to analyze how the readiness and challenges of Islamic higher education libraries in facing the 4.0 era. This type of research is a literature study. Literature studies can be obtained from various sources, journals, books, documentation, internet and libraries. while the data analysis used descriptive analysis method. The results show that the readiness and challenges of Islamic higher education libraries in Indonesia are not only prioritizing traditional roles by providing only physical facilities, but more than that the library must also understand the value of the library. In addition to facing very rapid technological developments, Islamic higher education libraries in Indonesia also need to be ready to face changes in user behavior that also change according to the times. Another challenge is the aspect of the university's mission, namely developing and advancing research. The open access movement is also one of the challenges that must be answered immediately by the Islamic higher education library. Then the challenge is to accommodate the rapid changes in teaching which are also greatly influenced by developments in the use of information technology as it is today.