This study analyzes the role of Economic Value Added (EVA) as a value-based performance measurement tool that is more comprehensive than traditional measurement tools in the context of Islamic banks. The background is the limitations of traditional accounting measurement tools that fail to take into account the cost of capital explicitly, whereas Islamic banks are required to achieve profitability while complying with Sharia principles. This qualitative research uses library research and Comparative and content analysis techniques to interpret theoretical concepts and compare EVA with traditional metrics. The results show that EVA doubles as an accurate metric for measuring real economic value creation by explicitly accounting for the cost of all capital, including profit-sharing funds, as well as a strategic managerial tool in the allocation of funds, determination of profit-sharing ratios, and remuneration bases. However, the implementation of EVA faces obstacles in the form of the complexity of adjusting the calculation according to Sharia and the need to change the organizational culture from earnings-based to value-based. In conclusion, EVA serves as a bridge between profitability objectives and Sharia principles, fostering operational efficiency and decision-making that leads to sustainable and responsible long-term value creation.