This study examines the jurisprudential and legal conception of preserving and managing mortgaged property by exploring the rulings of Islamic law and the provisions of Libyan legislation. It aims to clarify the fiqh-based view on preservation and liability, define the rules related to management and expenditure, and analyze the relevant legal texts in the Libyan Civil Code. The study ultimately evaluates the extent of harmony or divergence between the jurisprudential and legal perspectives and proposes necessary legislative amendments or improvements. The research problem arises from the central question: To what extent does the Libyan legal framework for managing mortgaged property align with the principles of Islamic jurisprudence?, The study adopts the descriptive–analytical method, drawing upon classical and contemporary jurisprudential and legal sources, as well as academic theses, peer-reviewed journals, and scholarly electronic databases. The findings indicate that Islamic jurisprudence prioritizes entrusting preservation to the mortgagor (rahin), as he is more knowledgeable about and more careful with his property, while holding the mortgagee (murtahin) liable if he undertakes possession or is negligent in handling it. In contrast, Libyan law adopts a more flexible approach regarding possession, which has opened the door to potential negligence, particularly in banking transactions. This highlights the need to strengthen legal provisions in a manner consistent with the safeguards established in Islamic jurisprudence.