This study critically examines how Islamic principles influence Islamic banks’ diversity, equity, and inclusion (DEI) practices in Turkey. By focusing on four anonymized Islamic banks, the research explores the alignment between Islamic values and DEI initiatives, assessing both the successes and challenges of their implementation. The findings reveal that while Islamic teachings on justice, equality, and compassion provide a robust ethical framework for DEI, practical challenges such as cultural norms, inconsistent application, and lack of leadership commitment often impede the realization of these principles. Effective practices, including corporate mentorship programs, flexible working arrangements, and fair compensation audits, correlate with improved organizational performance and employee satisfaction. However, gaps in execution, particularly in gender equity and the authenticity of top management’s commitment, highlight improvement areas. This study contributes to theory and practice by bridging the gap between Islamic ethics and contemporary DEI strategies, offering actionable insights for enhancing inclusivity in Islamic banks. Recommendations for policymakers and suggestions for future research are provided further to explore integrating Islamic principles into DEI practices and address several shortcomings.