This study aimed to examine the effects of non-performing loans on the profitability and lending behavior of commercial banks in Yemen. The study used a descriptive-analytical approach. The data of the study were obtained from the annual financial reports (2010 -2018) of 6 commercial banks operating in Yemen. A panel data model was used in this study. The independent variable of the study was non-performing loans as measured by non-performing loans to total loans and advances ratio (NPLS) while the dependent variables of the study were profitability (ROA and ROE) and lending behavior as measured by loans and advances growth (LAG) of the commercial banks in Yemen. To test the hypotheses of the study, regression analysis was used. The results of the study showed that there is a positive and significant effect of the non-performing loans ratio (NPLs) on the return on equity (ROE) of commercial banks in Yemen. Whereas the study found no effect of (NPLs) on the return on assets (ROA) and loans and advances growth (LAG) of commercial banks in Yemen.