Islamic modes of finance become new phenomenon in financial system. Islamic modes of finance are designed to facilitate financing by the principles in Islamic Sharia, such as mudarabah, musharaka and sukuk. In addition financial intermediation is an important indicator of economic development as well as economic growth.The objective of this study is to determine the relationship between Islamic modes of finance and Islamic financial intermediation by using case study of Malaysia, Indonesia and Jordan. This study employed fixed effect and random effect through time series data from 2001-2010 for both Malaysia and Indonesia. Liquid liabilities, private sector credit and Islamic modes of finance such as mudarabah, musharakah, murabaha, istisna,ijarah used as independent variables that expected to be influence Islamic financial intermediation as well as economic growth. Findings show that Islamic mode of finance which include murabaha, musharakah, mudarabah, istisna, ijarah. While, private sector credit as well as liquid liabilities are not affect Islamic financial intermediation.