Islamic banking was introduced in Pakistan in 1970 to meet the religious and economic needs of the people of Pakistan, wider steps have been taken in 1980 by the Banking Companies Ordinance (BCO 1962), which was modified to accommodate transactions are not interest-based banking system in Pakistan. What needs to be evaluated is the knowledge of Islamic banking products among customers of Peshawar. The reasons for changing the conventional banking to Islamic banking has been analyzed. This study will present the results of research carried out mainly with people who currently use conventional and Islamic banking and Islamic banking knowledge. In this research, we have tried to highlight some of the problems that are causing problems for the growth of Islamic banking. The dependent variables in this research are changing in other Islamic banks, customer satisfaction. We selected a sample size of 150 banking client (male and female) and used descriptive and correlation analysis to analyze the relationship between customer satisfaction and Islamic Banking Services in Peshawar. Key Words: Islamic Banking, Conventional Banking, Islamic Finance.