The aim of this study is to investigate the impact of entrepreneurial orientation (EO) on differentiation strategy. In this study, the components of EO are innovativeness, proactiveness and risk-taking. On the other hand, differentiation strategy indicates the product, process, market and brand differentiation. The study uses survey questionnaire for data collection. The data are collected from Muslim entrepreneurs of the apparel industry from Bangladesh. The study uses 339 data to conduct the research. After data collection, SmartPLS is applied for quantitative analysis to examine the effect of EO on differentiation strategy. The study indicates a positive and significant effect of innovativeness, proactiveness and risk-taking (EO) on differentiation strategy. Among the three components of EO, proactiveness is found the most significant component on differentiation strategy followed by innovativeness and risk-taking.