"hostility or discrimination against Muslims," supposedly rooted in dread or hatred of Islam, by 1996, from Islam + -phobia, as used in Judaeophobia, Francophobia, etc. Related: Islamophobic; Islamophobe.
The term [a report by the liberal think-tank Runnymede Trust] uses, 'Islamophobia,' is so recently coined that it has yet to be recognised in the Oxford English Dictionary, but according to the trust the phenomenon it refers to 'has existed in western countries and cultures for centuries.' ["Islamophobia," Third Way, April 1997]
The related words have been in occasional use for more than a century, however. Islamophobe is attested in 1877 in English and by 1914 in French.