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Institutions are the fundamental determinant of economic growth. A good institutional quality ensures the efficiency of resources allocation on productive economic activities to improve economic performance of the country. Therefore, pertaining a high quality of institution among the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries will be important to ensure continuing economic performance after the withdrawal of United States from the original TPP agreement. As a result, this study aims to investigate how institutional quality can improve the economic performance of member countries within CPTPP. An unbalanced panel data for 10 members of CPTPP (without Brunei) covering from year 2002 to 2015 were analyzed using the Least Square Dummy Variable (LSDV) model. An inversed-U shape of relationship was detected implying a nonlinear impact of institutional quality on the economic performance among CPTPP countries. The economic performance improved with better quality of institutions. However, a reverse relationship was found after the threshold level of institutional quality at the level of 0.638. This finding implying that countries with institutional quality of above 0.638 will hinder economic performance. Therefore, CPTPP countries can enjoy improvement in economic performance if their institutional quality to be kept below the threshold value.