This study aims to determine the effect of research and development and corporate governance on firm performance of Islamic banking in Indonesia and Malaysia. The data used in this study is Islamic banking data in Indonesia and Malaysia using the purposive sampling method so that there are 6 Islamic banking in Indonesia and 6 Islamic banking in Malaysia. The Generalized Method of Moments (GMM) was used to analyze this research. The results of this study found that research and development did not affect firm performance in Indonesia. This is inversely proportional to the situation in Malaysia which shows that research and development affect firm performance. Corporate Governance shows mixed results on firm performance of Islamic banking in Indonesia, namely the size of the company, the number of sharia supervisory boards, and the number of audit committees that do not affect firm performance in terms of ROE, while the number of directors affects firm performance with ROE as a proxy. In Islamic banking in Malaysia, it shows that the size of the company and the number of audit committees affect firm performance in terms of ROE, the number of directors and the number of sharia supervisory boards do not affect firm performance with ROE proxies. Meanwhile, the size of the banking company, the number of directors, the number of sharia supervisory boards, and the number of audit committees do not affect firm performance in terms of ROA. In Islamic banking in Malaysia, it shows that the size of the company and the number of sharia supervisory boards affect firm performance in terms of ROA. while the number of directors and the number of audit committees does not affect firm performance in terms of ROA.