Man is the highest creation of Almighty Allah. He is equipped with the highest of potentialities and is left relatively free in his will, action and choice. He has shown man the right path, and the life of Prophet Muhammad (S.A.W.) provides a perfect example for him. Islam, being a comprehensive way of life, encompasses a complete character system and Glorious Qur’an, as a compendium Book, contains multifarious excellent characters that teach the believers how to conduct their life accordingly. The importance of these excellent characters in Islam is so high so much that every Muslim is exhorted to possess excellent moral quality. It is on this basis that Islam brought down a plethora of universal and fundamental principles for guidance of humanity in almost every circumstance. To achieve these fundamental rights, it presents an effectual moral system that will make it easy for its adherents to achieve the desired goal. Almighty Allah however, through the Qur’an encourages Muslims to develop heart capable of discovering His pathway that governs and sustains the functional system in human generations. Every person is therefore responsible for his own actions, considering the fact that human nature is enslaved and enticed to committing sin, oppression, and polytheism. It is generally believed that Muslims without discipline and moral values are ineffective and valueless in their dealings. It is in line with this backdrop that this paper intends to explore the role of Qur’an and Hadith in character building stressing the Islamic moral values associated with them. To achieve the objectives of this research, this paper attempts to answer some basic questions with a view to unraveling the role of Qur’an and Hadith in character building towards evolving prototypical Muslim society. What are the excellent moral qualities? How do the Qur’an and Hadith advocate moral virtues such as patience, truthfulness, justice, thinking good about others, responding to the evil with good among others? How does the moral standard ensure prosperity of a Muslim individual or society? What are the factors that help grow the moral faculty of Muslim society in making them religiously inclined to good moral qualities? These and similar questions form the objectives of the study. The study also adopts analytical phenomenological methodology.