The purpose of this paper is to determine whether strategic information systems sophistication leads to multiple strategic performances in terms of cost reduction and flexibility of operations in Islamic banks. A second generation method of data analysis known as the Structural Equation Modelling (SEM) was used to analyze 302 questionnaires that were distributed among the Islamic bank executive staff in Kuala Terengganu, Malaysia. The results of the study revealed that strategic information systems sophistication has a positive effect on the strategic performance of Islamic banks especially in terms of flexibility and cost reduction. The study is restricted to twelve Islamic banks in Kuala Terengganu. Thus, it would be important to conduct the study in the whole of Malaysia, and number of banks should be involved. The paper reveals that Islamic bank managers and stakeholders must understand the importance of strategic information systems sophistication and its relevance to strategic performance.Several studies were conducted to examine the relationship between strategic information systems and organizational performance. The paper examines the relationship between sophisticated strategic information systems and strategic performances of Malaysian Islamic banks, a subject not yet explored.