Most female small business owners, particularly in developing countries, have issues accessing the necessary finance to grow their businesses. While this is contingent on several factors, there is also the possibility that their psychological empowerment can either propel or curtail their participation in financial initiatives. In light of this, Using the Psychological empowerment framework deployed by Spreitzer (1995), this study employs the Theory of Planned behaviour to analyse the influence of psychological empowerment on participation in Islamic microfinance programs via a PLS-SEM analysis. Existing studies that trail this path either discuss psychological empowerment in terms of self-efficacy or perceived behavioural control or have discussed it as a consequence of microfinance and not as a precursor. There is a dearth of literature that analyses the impact of psychological empowerment, which is a broader, more encompassing term and its influence on participation in Islamic microfinance. The findings inform of the positive influence psychological empowerment, subjective norm, and attitude have on the intention to participate.