Muhammad became the first U.S. Olympian to compete while wearing the Islamic head scarf during competitions in Rio de Janeiro past year, winning a bronze medal along with her teammates in the women's team sabre event.
The Barbie unveiling represents another mainstreaming of the hijab, a broad term for Islamic modesty standards for women in how they dress.
In 2016, she became the first American athlete to compete while wearing a Hijab. I'm really excited to have this moment happen in my life and also for all these little girls now who can shop for Barbie doll that may look them, may wear a hijab like they do, or like their mom does, or like a friend does.
According to Mattel's website, the line which was launched in 2015 was meant to recognise female heroes who inspire girls by breaking boundaries and expanding possibilities for women everywhere.
"I'm proud to know that little girls everywhere can now play with a Barbie who chooses to wear hijab!"
Other dolls in the collection include African-American ballerina Misty Copeland, and filmmaker Ava DuVernay, director of Selma and the upcoming A Wrinkle in Time. Muhammad's Shero doll will hit stores in 2018.
While on stage at the Glamour's Women Of The Year event, Muhammad and Graham compared their dolls' thick legs - which differ from the traditional appearance of Barbie dolls' slender frames.
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. Like Graham before her, Muhammad made sure the doll represented her in body shape and in her makeup.
Muhammad's face lit up when she saw her Barbie replica, identical to her down to the fencing uniform and white hijab. "I just love it", she said.
"I think that having strong legs helped me win a medal at the Olympic Games, so I wanted my legs to be larger, more athletic legs, toned legs". "Perfect hijab moment right here, this is wonderful". "I come from a pretty small sport that a lot of people had the opportunity to learn about last summer at the Olympic games and now to even have fencers in the conversation", she says. This week, Mattel introduced the first Barbie doll to wear a hijab.