The purpose of this study is aimed at investigating the effect of financial and non-financial services offered by Islamic microfinance on micro-entrepreneurs’ economic performance. The study attempts to further examine the moderating effect of bank monitoring in enhancing financial and non-financial services towards micro-entrepreneurs’ economic performance. Data were collected from micro-entrepreneurs who involved in the Islamic microfinance program in three provinces of Southern border (i.e. Pattani, Yala, and Narathiwat) by distributing 480 questionnaires to the selected respondents in the study. Structural Equation Modelling (SEM) using AMOS version 23 was employed to analyze the data and tested the research hypotheses. The result revealed that there was a statistically significant effect of both financial and non-financial services on micro-entrepreneurs’ economic performance (i.e. increase in outputs, investment, and assets). The study found that financial services had a more significant influence on micro-entrepreneurs’ economic performance than non-financial services. Interestingly, the result of this study also attested that bank monitoring had a moderating effect by enhancing financial and non-financial services on micro-entrepreneurs’ economic performance. The implication of these findings was discussed and the recommendations for future research were provided.