The study aimed at presenting a proposed strategy for developing the institutional performance of Al-Azhar institutes in the southern governorates of Palestine in light of Administrative Process Reengineering (APR/BPR) by measuring the level of institutional performance of Al-Azhar institutes and the reality of applying administrative processes re-engineering in these institutes, in addition to determining the nature of the relationship between the level of institutional performance in these institutes and the reality of applying the approach of administrative processes re-engineering. The study followed the descriptive analytical approach and the constructive approach. The researcher used a questionnaire that was applied to all staff members of the study population in the comprehensive survey of 152 employees from the administrative and academic staff of whom 125 employees responded. The study found that the respondents' estimate of the level of institutional performance of Al-Azhar institutes in the southern governorates of Palestine got a relative weight of (71.22%), i.e., a high level of performance. The dimensions were ranked as follows: "Beneficiary satisfaction" came first with (76.42%), "Partnerships and resources" at (74.54%), "Internal operations" at (69.12%) and finally "learning and growth" at (64.84%). The results also revealed that the respondents' estimate of the reality of administrative process re-engineering in Al-Azhar institutes in the southern governorates of Palestine got a relative weight of (69.20%), which is a relatively high level. The dimensions were ranked as follows: "Control" came first with (71.68%), "Organization" at (69%), "Monitoring and Evaluation" at (68.66), "Guidance" at (68.52%) and finally "Planning" at (68.16%). The results showed a strong positive direct correlation between the sample members' mean estimates of the level of institutional performance at Al-Azhar institutes and their mean estimates of the reality of applying APR. The study also presented a proposed strategy for developing the institutional performance of Al-Azhar institutes in the southern governorates of Palestine in light of administrative processes re-engineering. It recommended implementing this strategy including procedures to improve the institutional performance of Al-Azhar institutes and to enhance the adoption of the administrative processes re-engineering approach................. Keywords:................. Proposed Strategy, Institutional Performance Development, Business/ Administrative Process Reengineering (BPR/APR), AL Azhar Institutes, Southern Governates of Palestine.