The purpose of this paper is to define the elements of intellectual capital of firms in Turkey and to empirically investigate the relationship between intellectual capital and market value of firms in Istanbul Stock Exchange. To create a suitable intellectual capital measurement model for this study, a wide literature research was made. In almost every created intellectual capital measurement model, elements of intellectual capital are defined in three dimensions; i.e. human capital, structural capital and relation capital. For the research, an intellectual capital measurement model is created and four hypotheses are defined. The main conclusions from this study are that: human capital and relation capital of firms have a positive relationship with market/book value of firms in Turkey; and structural capital of firms in Turkey has a correlation with human and relation capital.