This study is about the relationship between innovation capability and innovation performance among Smes tourism in Kelantan. In order to improve innovation performance, there is an emphasis on structure, culture, human resource and system. A quantitative study is utilised to carry out this study. A simple random sampling method is used and responses from 102 respondents are collected. to analyze all the data, descriptive analysis, reliability analysis and Pearson correlation are used. The result supports all the variables. This research contributes to determinants of the relationship
between innovation capability and innovation performance among tsme in kelantan. This research and data can be used by industry stakeholders to provide a better service by determining the association between innovation capability and innovation performance among Smes tourism in kelantan.