The main objective of this study is to assess the perception of micro, small and medium scale entrepreneurs (MSMSEs) on Islamic banking products and services in Yobe state. This study adopted descriptive survey design approach. The target population under this study is 784,044 registered micro, small and medium scale entrepreneur, Using Krejcie & Morgan sample size formula the study arrived at a sample size of (382), respondents were selected using a judgmental sampling technique across the three zones proportionately. binary logistic regression was employed to test the hypothesized model of the study. The data was analysed using the Statistical Package for Social Sciences (SPSS) software, version 22.0. The result revealed that education, age, religion, and level of income significantly affect perception on Islamic banking system and operations. The research recommended the need to establish more branches of Islamic banks to enhance easy access to their services by customers. The research also recommended a mass campaign to be organized by Islamic banking institutions in conjunction with MSMSEs for enlightenment purpose, this can be achieved through the use of radio station, TV channels, newspapers outlets and social media platforms. This study also recommends the patronize of Islamic banking products and services among MSMEs because of its inherent nature of risk management. Lastly, the study also suggested Islamic banking institutions to provide excellent and quality service delivery, as well as, strong affirmation to Islamic principles of non interest ethical mode of financing to help easily draw the attention of MSMSEs to consider it as an ethical mode of financing.