The emergence of Islamic banking system in the Muslim world is the most inspirational financial and economic phenomena. Islamic banking/interest free banking/ scheme is considered as a system that significantly considers ethics, right and wrong in financing operations. The aim of this study to examine factors affecting customers' intention to use interest free banking in case of two private banks (i.e. OIB and united banks S.C ) in Bahir Dar city branches. The study used a quantitative approach in a survey of customers' of interest free banking by taking closed ended questionnaires'. The researcher used both descriptive statistics and inferential statistics to analysis the data. The data was collected from primary data of 217 questions were distributed to IFB customers in OIB and united banks. The sampling techniques was convenience sampling method, in which samples were drawn from interest free banking customers' in two private banks which is found in Bahir Dar city branches. Descriptive statistic, correlation matrix, multicolinearity, autocorrelation and regressions analysis were carried out. The findings revealed that attitude, subjective norm, perceived behavioral control and networking