This research aims to study the influence of cooperative literacy on the financial performance of sharia cooperatives. The cooperative literacy level of the cooperative members is questionable considering that not all cooperatives provide cooperative educational functions for the members. This research was quantitative descriptive and was conducted in 14 Sharia Cooperatives in Special Region of Yogyakarta. The cooperatives literacy of the members are measured using 6 knowledge indicators, namely: 1) about the institution identity (JDL); 2) duties and obligations of institution (TDK); 3) institutional organization (KL); 4) the role as cooperatives members (PA); 5) savings mechanism (MS); and 6) financing mechanism (MP). The Financial Performance of Sharia Cooperatives which is measured using cooperatives share (SHU), Assets, Third Party Loan (DPK), and modal ratio on asset, cash ratio, and profitability. The results show that all variables as the cooperatives literacy measures have direct and significant impacts on the cooperative literacy level of the members. Meanwhile, the cooperatives literacy of the members has a negative and significant influence (indirect) on the financial performance of sharia cooperatives. After the test is taken, there are only 3 financial indicators can be used namely cooperatives share (SHU), DPK, and cash ratio. The cooperatives literacy level can explain 8% of the financial performance. The seventh hypothesis is rejected due to the tendency of some causes: 1) The cooperative educational implementation for the members has not been maximum; 2) There is a lack of cooperatives understanding; 3) Real action has more influence on financial performance