Employee performance is a form of employee achievement after going through various stages in the work process and can be used to find out the extent of employee success and failure in the work. Based on the observations showed that the performance of MSME employees in Kalibawang, Girimulyo and Nanggulan subdistricts was not optimal. This is allegedly because it is influenced by islamic capital, marketing, and motivation. The formulation of problems in this research is whether capital and marketing can affect the performance of employees directly or through the Islamic motivation of MSMEs in three subdistricts in Kulon Progo Regency, Yogyakarta. This study aims to find out the influence of capital and marketing on the performance of employees with islamic motivation covariance on MSMEs Kulon Progo Regency, this study uses the archeal The Posttest Only Control Group with islamic motivation covariance. Data collection techniques use interviews and questionnaires, while sampling techniques use non probability sampling with a sample number of 68 people. The results showed that capital and marketing have a positive and significant effect on employee performance through Islamic motivation. This can be seen from the results of simple linear regression analysis, multiple linear regression, t test, determination coefficient test, sobel test and path analysis. Islamic motivation as a moderator variable mediates between the capital to the performance of employees who are partial mediation and Islamic motivation as moderator variables that mediate between marketing to employee performance, both of which are full mediation.