Hermeneutic hadith is disputed by academics; some refuse, others develop the theory. The hermeneutics of hadith is from the West used in the Bible. The research method used is the library research with hermeneutical interpretation approach and produce several things, such as: First, in terminology, hadith according to Ali Mustafa Yaqub is a source of Islamic teachings both derived from the words, deeds and the characteristics of the Prophet Muhammad. The characteristics of the Prophet Muhammad are part of the Sunnah. Secondly, in understanding the text of the traditions of the Prophet Muhammad is not only taken from the literary meaning but must look for other meanings so that the text of hadith can be fully understood. Comprehensive understanding of hadith can be done by looking at the background of the emergence of Hadith (asbāb al-Wurūd), local and temporal (zamāni wa makāni), sentence causality (‘illat al-kalam) and socio-cultural (taqālid). Hermeneutic Gadamer states that the application of the hadith understanding can be understood as part of the hermeneutical process of hadith, although Ali Mustafa Yaqub does not explicitly explain the hermeneutic theory used in the understanding of a hadith text.