This study aims to analyze the integration of Dieng Culture Festival (DCF) values in Early Childhood Education (ECE) and its contribution to children’s character development in Dieng Kulon Village, Banjarnegara. The research employed a qualitative descriptive approach. Data were collected through observation, in-depth interviews, and documentation involving ECE teachers, community leaders, and parents. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, including data condensation, data display, and conclusion drawing. The findings indicate that DCF embodies strong cultural values such as religiosity, cooperation, care, tolerance, and respect for local traditions, which are manifested in rituals, cultural parades, and artistic performances. These values are integrated into ECE learning through contextual, participatory, and play-based approaches, enabling children to learn through direct and meaningful experiences. Learning activities include cultural simulations, movement-based art activities, and exploration using loose parts derived from natural materials such as stones, leaves, and other environmental objects. The results show that DCF-based learning positively influences children’s cognitive, social, emotional, and motor development. Children demonstrate stronger cultural identity, improved social interaction, increased empathy, tolerance toward diversity, as well as enhanced creativity and self-confidence through active participation in learning activities. The study concludes that integrating local cultural values such as DCF into ECE is an effective and contextual strategy for holistic character development and meaningful early learning experiences. The study contributes to the development of culturally responsive ECE pedagogy by positioning local cultural heritage as a contextual learning resource for early childhood character education.