This study examines the relationship between agency costs and the financial performance of Egyptian non-financial Listed Companies, and the effect of debt covenants (financial leverage) on that relationship. To achieve the goal of the research and test its hypotheses, the researchers relied on a multiple regression model, Using a sample of 581 firm-year observations during the period from (2016-2021). After controlling for the effect of (company size, ratio of operating cash flows to assets, sales growth, dividends, company age, crises) on financial performance. The results of the study indicated that there is a significant negative relationship between agency costs and financial performance as measured by return on assets (ROA). The results also indicated that debt covenants (financial leverage) can mitigate the negative relationship between agency costs and financial performance. The researchers conducted a sensitivity analysis of the previous results using return on equity (ROE) as a measure of financial performance instead of return on assets, and they found that the results of testing the study hypotheses were stable. The current study contributes to the body of literature examining accounting information users' perceptions of the effects of agency relationships. Keywords: Agency Cost, Asset turnover, Financial Performance, Debt Covenants (Financial Leverage).