The Islamic banking is one of the most rapidly emerging trends in many different parts of the world. The interest based banking system has now been very evident to the economies regarding their impacts on the economies and the individuals involved. The study analyzed the key determinants of the Islamic banking in the banking customers living in Peshawar KPK using a self-administered questionnaire to collect data from the customers. Using a multiple regression model the study analyzed the data collected from a sample of 45 respondents and the results of the study suggest that the positive aspects of the Islamic banking and the flaws of the interests based has a positive relationship with the acceptance of the Islamic banking in Muslims across Peshawar KPK. Key Words: Islamic Banking, Flaws of Interest based banking and Positive aspects of Islamic.