The analysis of the impact of green finance on the financial performance and investment efficiency of Iraqi banks listed on the Iraq Stock Exchange is one of the main objectives of this study, given the growing global trends toward integrating sustainability principles into banking and financial activities, along with the increasing interest in assessing the economic effects of green finance on the performance of financial institutions. The study used a descriptive-analytical approach with panel data from eight Iraqi banks during the period from 2020 to 2025, totaling 48 observations, which were based on data, extracted from annual reports and published financial statements. Green finance was measured using a composite Green Finance Index based on five indicators reflecting the extent to which banks adopt environmental initiatives, policies, and disclosures. While financial performance was measured using the return on assets (ROA) indicator, investment efficiency was measured by the ratio of total investments to total assets. For data analysis, a set of standard tests for Panel Data was used, including stationarity tests, model selection, and diagnostic tests, followed by estimating regression models using the fixed effects model with robust standard errors. The results showed a positive and statistically significant effect of green financing on both financial performance and investment efficiency, indicating that increasing banks' adoption of green financing practices contributes to improving profitability and enhancing the efficiency of utilizing their investment resources. The study recommends developing banking policies that support green financing, enhancing environmental disclosure, and integrating sustainability standards into banking strategies to support financial stability and sustainable development in Iraq.