Dissertation (MA Business Administration)The study was focused in assessing the operation of Islamic bank in Tanzania. The objective of the research is to discover operation of Islamic bank is it brings profit. The study area was chosen because of being convenient to the researcher in acquiring data because the main branch of the bank is allocated there. Nevertheless, on these study is a new field in Tanzania, fewer has been done on Islamic bank. Preferences for the achievement of the company; hence, requiring a study, hence the researcher develop the interest on general objective of the study on operation of the Islamic bank. Employed was Cross-sectional research design in the methodology in involving a sample size of 60 respondents. As its methodology this investigation used data collection such as questionnaires, observation and reading official documents. Data collected were analyzed descriptively by SPSS software by using the figures and tables. The findings show that Islamic bank operation create profit because use financial contract which is create profit also its role create profit to society, includes: to clear and settle payments; to aggregate (pool) and disaggregate wealth and allow the flow of funds so that both large-scale and small-scale projects can be financed; to transfer economic resources over time, locations and sectors; to accumulate, process and disseminate information for decision-making purposes; to provide ways for managing uncertainty and controlling risk; and to provide ways for dealing with risk and return issues that arise in financial contracting. These roles can be performed by offering financial transactions, pooling savings and channeling funds. By performing these roles, Islamic banks play a valuable and integral part in the development of the national economy by creating wealth for individuals and the community.