This study aimed to understand the significant role that Takaful insurance can play in supporting Islamic banks, particularly in light of the considerable challenges facing financial institutions today. The study was predicated on a clear problem: a dearth of comprehensive research integrating Takaful insurance with its role in enhancing banking operations. To achieve this objective, the researcher adopted a descriptive and analytical methodology. Data were collected via a questionnaire distributed to a carefully selected sample of 21 employees at the Libyan Islamic Bank, Sabratha branch. The collected data were subsequently analyzed using specialized software. The researcher utilized SPSS for data analysis, conducting several statistical tests with a significance level (α) of 0.05. The findings revealed that Takaful insurance is not merely a means of adhering to Islamic Sharia principles, but rather a multifaceted tool that improves the quality of banking services and markedly enhances customer confidence. The study also demonstrated its significant financial role in achieving sustainable profits, which supports the bank's stability and capacity for growth. Consequently, the study concluded that Takaful insurance represents an effective and competitive alternative to conventional insurance. It provides clients with comprehensive protection against financial risks while simultaneously promoting clarity and transparency in the products and services offered.................. Keywords:....................Takaful insurance, banking operations, level of awareness of Takaful insurance, regulatory frameworks and legislations, Libyan Islamic bank.