This study aims to evaluate the performance of Islamic banks using the Maqasid Shariah Index (MSI) approach, particularly in the context of the digital transformation era that increasingly affects the banking system. The main focus of this study is to assess the extent to which Islamic banks are able to fulfill the objectives of Shariah—such as the protection of religion, life, intellect, lineage, and wealth—in their operations, as well as how digitalization influences the achievement of these goals. The methodology used in this research is library research with a descriptive qualitative approach. Secondary data were obtained from 30 scholarly references, including accredited SINTA and Scopus journal articles, academic books, and previous studies related to the evaluation of Islamic banking performance and maqasid shariah. The results show that although some Islamic banks have adopted maqasid principles in their policies and reporting, the implementation is not yet optimal. Many Islamic banks still tend to focus more on financial performance and profitability rather than on achieving the social values of maqasid, such as community empowerment and economic justice. Digital transformation presents both opportunities and challenges: on one hand, it accelerates services, but on the other hand, it has not fully supported the comprehensive realization of maqasid. Based on these findings, it is recommended that Islamic banks better balance profit-oriented aspects with the social mission of maqasid shariah. There is a need for the integration of digital technology grounded in maqasid values in strategic planning and performance evaluation. Practically, this research can serve as a reference for policymakers and Islamic bank management in formulating maqasid-based performance indicators. Theoretically, this study enriches the literature on banking performance evaluation from a more holistic and humanistic Shariah perspective.