Is a dowry allowed in Islam?

No, not a dowry paid by the bride's family. Islam requires the groom to give the bride a mahr, a gift that belongs to her alone. A "dowry" in the cultural sense, where the bride's family pays money or goods to the groom or his family, has no basis in Islamic law and is discouraged. It is also illegal in some countries.
Mahr is not a dowry
The mahr is a gift from the groom to the bride, and she owns it. The Quran commands it:
Many English translations use the word "dowry" for the mahr, which causes confusion. In the cultural sense, a dowry (often called jahez or similar) is the opposite: money, gold, furniture or a car handed over by the bride's family, often as a condition of marriage. The mahr flows towards the bride. The cultural dowry flows away from her family. See What is mahr and how much should it be?
Is any gift from the bride's family allowed?
Yes, if it is a voluntary gift to the bride for her own use. When Ali married Fatimah, the Prophet ﷺ prepared her with a few simple household items, including a velvet garment, a water-skin and a pillow stuffed with idhkhir grass (Sunan an-Nasa'i 3384). Parents who freely help their daughter set up her home, with no demand and no pressure, are doing something good. The key differences are that it is voluntary, it is modest, and it belongs to the bride rather than to the groom's family.
Why demanded dowries are harmful
- They turn marriage into a transaction, instead of a bond of compassion.
- They burden families, leading to debt and delayed weddings, especially for families with several daughters.
- They can lead to mistreatment of brides whose families cannot pay enough.
- They go against the Prophet's advice. He told people to marry someone whose religion and character they are pleased with (Jami at-Tirmidhi 1084), not someone who can pay the most.
Weddings should be accessible. See Is it okay to have a big expensive wedding as a Muslim?
What to do if you are pressured
If a prospective groom or his family demands a dowry, you can politely decline and look elsewhere. A man who starts a marriage by demanding money from his wife's family is showing his priorities. Ask an imam or a trusted elder to speak with the families, and remember that you are free to say no. Also keep in mind the practical side of the mahr, which is the bride's property from the start. See Do I pay zakat on my mahr?
- The mahr is Islamic: a gift from the groom that belongs to the bride.
- A cultural dowry paid by the bride's family has no basis in Islam.
- Voluntary, modest gifts from the bride's parents to the bride are fine.
- Demanding money or goods is harmful, and you may refuse such demands.
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