We think it's safe to say that this is a childhood dream come true for many hijab-wearing girls out there. She was also the first female, Muslim-American athlete to win a medal at the Olympics, bringing home the bronze for sabre fencing.
The hijab - one of the most visible signs of Islamic culture - is becoming increasingly popular with Western businesses, from hijab-wearing models in top fashion magazines to Apple's recently launched emoji character in a hijab.
Mattel has released an unusual Barbie doll for the first time in 58 years of the history of toys, her hair was hidden under the hijab. The doll is part of the Barbie "Shero" line that honors women who break boundaries.
Other prominent women who were honoured through the "Sheroes" line include Olympic gymnast Gabby Douglas, model Ashley Graham, ballerina Misty Copeland, director Ava DuVernay and actress Zendaya. Ibtihaj Muhammad's Barbie will be available sometime in 2018.
"My mom made efforts when I was a kid to bring dolls into the house that were only dolls of color", she said.
"By honouring her story, we hope this doll reminds them that they can be and do anything".More news: Mugabe's house sealed off by army
The doll was unveiled during Glamour's Woman of the Year live summit in Brooklyn, New York, where the Olympian was present on the stage.
Muhammad's face lit up when she saw her Barbie replica, identical to her down to the fencing uniform and white hijab. So I wanted to have athletic toned legs for sure.
As Muhammad notes to People, "It's cool to have Muslim girls in the conversation, to have African Americans as fencers is also really cool". "Perfect hijab moment right here, this is fantastic".
She was presented with the doll by last year's victor, body activist and model Ashley Graham.
Speaking to People, Muhammad said she was excited about working with Mattel because it works hard to promote strong women and inspire future generations.