Mudarabah Application In Shariah Public Financing Bank Karya Mugi Sentosa Surabaya Title: Mudarabah Application In Shariah Public Financing Bank Karya Mugi Sentosa Surabaya Authors: Sri Abidah Suryaningsih1, Sri Iswati2, Faishal Haq3 Affiliations: Universitas Negeri Surabaya1; Universitas Airlangga2; Universitas Islam Negeri Sunan Ampel3 Publisher: IOSR Journal of Economics and Finance (IOSR-JEF) Abstract The purpose of this study is to analyze the operational of mudharabah contract in BPR Sharia in Surabaya, also to analyze the people understanding and experience on the operational of mudharabah contract. The method applied in this study is qualitative method with phenomenological approach that underlined on the essence of social reality and to know what is being existed in a society. The study result shows that the capital owner (shohibul mal) understanding and knowledge which is already explained first about mudharabah contract as they became the customer and their trust on the performance of BPRS KMS, while the understanding and the experience of the entrepreneur (mudharib) follows the rule of RI constitution number 21 year 2008, and also follow the Fatwa of National Sharia Council Number 02/DSN-MUI/IV/2000. As for the advantage of mudharabah saving are; the characteristics are on the Islamic pillars, the profit, the opportunity to infest for the bank and the risk of liquidation is controlled; while the disadvantage of mudharabah saving are the customer can‟t withdraw their money anytime and the loss is completely paid by the bank. Keywords: Mudharabah contract, BPRS Sources: http://www.iosrjournals.org/iosr-jef/papers/Vol9-Issue1/Version-1/C0901011929.pdf