The aim of this study is to find out whether cyberloafing and person-organization fit has a positive effect on employee performance, and whether innovative work behavior plays a mediating role in this relationship. The study takes a quantitative approach using partial least squares structural equation modelling with data from 210 online questionnaires that were distributed to employees in the banking sector in Indonesia who had access to the internet at the workplace, and were allowed to use it for non-work activities (i.e., cyberloafing). The study shows a positive relationship between innovative work behavior, and both cyberloafing and person-organization fit. It also shows that innovative work behavior acts as a mediator between cyberloafing, person-organization fit, and employee performance. The study advances the management literature by showing how cyberloafing and person-organization fit influences employee performance through innovative work behavior, and provides new insights into the antecedents of cyberloafing. In addition, by clarifying the type of situations in which practitioners should adopt a positive or negative view towards cyberloafing, it provides guidance for those who wish to address the issue of cyberloafing and employee performance in their organization.