This article aims to describe the dynamics of halal labeling in Bali, especially in Denpasar City. Halal dynamics have become a paradox within the non-Muslim community. This research used a qualitative approach. Data was gathered through interviews and non-participative observation of food stall owners, Denpasar’s Hindu indigenous and Muslim residents, selected by combining purposive and snowball methods. The first group interpreted the existence of halal food stalls as enriching food choices. Halal food stalls influence Bali’s social economy. The second group was resistant to halal labeling. The opposition was showed by introducing halal’s anti-thesis, which is called Sukla. The third group is moderate. This group presumed that halal labeling strengthens tourism destination image. However, it might slowly deface Bali's position as a cultural tourism destination.