The Bahraini Dinar was introduced as a currency in 1965, six years before Bahrain gained full independence; it replaced the Gulf Rupee at a rate of 10 rupees = 1 dinar. The Dinar is subdivided into 1,000 Fils (the singular form is also Fils); hence it is usually represented with three decimal places denoting the Fils. The 500 Fils (0.500 Dinar) coin is the largest circulating denomination (larger denominations have been issued as non-circulating legal tender only).
The first use of the denomination was for this silver non-circulating commemorative in 1968. Designed by the Royal Mint's Michael Rizzello, it features an effigy of the first Emir of the country on the obverse and the Coat of Arms on the reverse, with a text commemorating the opening of Isa Town - an affluent town named after the Emir. This was re-issued in 1983 for a special silver set.
Within an octagon, the crowned Coat of Arms of Bahrain; above, البحرين (Bahrain); below, the same in English: BAHRAIN; to the left (vertically), the date in common numerals, in Hijri year then in Common era: 1403-1983; to the right (vertically), the same but with Arabic numerals: ١٤٠٣-١٩٨٣.
Outside the octagon, the town name is in Arabic around above: مدينة عيسى and in English around below: ISA TOWN. The denomination and value are in Arabic around left: ٥٠٠ فلس and in English around right: 500 FILS.