This study aims to analyze the mapping of Islamic banking potential development in Purworejo district, because there are not any Islamic banks in Purworejo district until these days (2016). Recently, Islamic financial institutions that grow in Purworejo district are only Baitul maal wattamwil (BMT). The study used descriptive qualitative method, in which the researcher described the data that had been gathered through questionnaire, interview and the data obtained from BMT. The indicators used for the study were financial literacy level of Purworejo district community, the growth of funding and financing of BMT in Purworejo district. Based on the result of the study, the researcher represented the Islamic banking potential development. The result of the study shows that the financial literacy level of the community is 55 percent which iscategorized as good, which means it well be a chance for theh growth of Islamic banking in Purworejo district. Besides that, the funding and financing in BMT are increasing which become other variables to support the result of the study. Therefore, the community except the existence of Islamic banking in Purworejo district.