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Purpose: This paper examines Islamic microfinance impeding sustainable women’s entrepreneurial performance in South Punjab, Pakistan. Further, we examine whether human capital mediates the relationship between variables Design/Methodology/Approach: To examine the impact, the primary data were collected from 220 women entrepreneurs who obtained microfinance from Islamic microfinance institutions (IMFIs) and Non-Islamic microfinance institutions operating in South Punjab, Pakistan. The correlation and regression models are used to translate the relationship and measure the impacts of microfinance on women’s entrepreneurial performance. Findings: Results show that Islamic microfinance plays a positive role in women's entrepreneurial success. Further, documented that IMFIs have contributed more to entrepreneurial growth as compared to non-IMFIs.   Implications/Originality/Value: This paper can be further extended by incorporating more factors and increasing sample size in order to get more significant results.