The title of this research is A study on Sharia Bank and The Application of The Prudential Principles on Mudharabah Funding. The research is a normative jurisdicial that is doctrinal. Materials are found through library study which then is analysed prescriptively using conceptual and qualitative approaches.Sharia Banks are banks that are bound to National and Islamic Laws (Sharia). The being bound has some consequences that are related to the position of Sharia Banks in the law construction as well as the validity of the prudential principles. Apart from that, the being bound also brings up a certain characteristic on sharia banks, that is, the objectives of sharia banks are not only material but they also are spiritual.Keywords : sharia bank, mudharabah, mudharib, shahibul mal, prudential principles