This study examines the relationship between Islam and democracy with emphasis on the issue of whether and how Islam has bearings on democratic adjustment speed. Using comprehensive data on 17 Asian countries from 1996 to 2010, the study demonstrates that religion is a significant factor for determining democracy. Results indicate that the level of democracy in Islamic countries is generally lower than that in non-Islamic countries. However, the level of democracy in Islamic countries exhibits an upward trend, whereas that in non-Islamic countries displays a downward trend. Moreover, when benchmark variables are controlled, democratic adjustment in Islamic countries is faster than in non-Islamic countries. Hence, despite the current lower level of democracy in Islamic countries, the results of this study refute the conventional wisdom that Islam hinders democracy. Instead, Islamic countries are highly malleable and exhibit a potential for faster democratic development compared with non-Islamic countries. Results further suggest that Islamic countries can effectively promote democracy by improving education, minimizing the gender gap, controlling population growth, or becoming an oil exporter similar to non-Islamic countries. However, Islamic countries likely own an additional unique advantage in effectively improving democracy – that is, promoting urbanization. This aspect is in contrast to non-Islamic countries where urbanization plays no role in determining democracy.