Even though, Islamic financing system is very debating and controversy phenomenon,rnit is expanding continuously beyond Organizations of Islamic Countries. However, therernis no empirical evidence that point to the effects of Interest Free Banking on the keyrneconomic drivers such as Entrepreneurship, small and medium enterprises particularlyrnin Ethiopia. Hence, this paper examined the effects of Interest Free Banking onrnentrepreneurial performance in the case of Commercial bank of Ethiopia â€œCBE NOORâ€.rnThe study explores seven independent variables (awareness, flexibility, support, Islamicrnbank business ethics, entrepreneurial orientation and competitiveness and therndependent variable is entrepreneurial performance). The research was employedrndescriptive survey mixed approach and primary data gathered through questionnairernand semi-structured interviewed. Respondents were selected purposive samplingrntechnique from Entrepreneurs who have business relationship with commercial bankrnof Ethiopia Interest Free Banking dedicated windows and staffs delivering Interest freernbanking services. There were 150 questionnaires distributed to Entrepreneurs andrninformation gathered from seven Interests free banking service delivering staffsrnthrough semi-structured Interview. Analysis measured by Multinomial logisticrnregression and reliability tested by spearman correlation test. The finding statisticallyrnshows that awareness, support, entrepreneurial orientation, Islamic business ethicsrnhas strong positive relationship between entrepreneurial performance in Ethiopiarncontext.