This paper aims to examine how the role of innovation capability in improving the marketing performance of Batik SMEs in Central Java, Indonesia during the Covid-19 Pandemic. The role of innovation capability (IC) is examined by analyzing its ability to mediate the influence of market orientation (MO), entrepreneurial orientation (EO), marketing capability (MC), and operational capability (OC) in improving marketing performance (MP). The relationship between these six concepts is something that has not received serious attention from academics in Indonesia. In this study, the 200 batik entrepreneurs were involved. The results showed that IC was proven to be an intervening variable in improving MP. Furthermore, this study expects that the development of IC can improve the MP of batik SMEs in Central Java during this pandemic, so that SMEs can continue to operate and develop. Keywords: Market Orientation, Entrepreneurial Orientation, Marketing Capability, Operational Capability, Innovation Capability, and Marketing Performance