Digital transformation has reshaped how Generation Z accesses, evaluates, and interprets religious information, creating new challenges for Islamic Education and religious moderation. This study examines patterns of religious information consumption among Generation Z Muslims, the emergence of digital echo chambers, students’ experiences in responding to religious differences, and the role of Islamic Education in strengthening religious moderation. A qualitative approach was employed in several senior high schools in Probolinggo City, East Java, involving Muslim Generation Z students as primary informants and Islamic Religious Education (PAI) teachers as supporting informants. Data were collected through in-depth interviews, observation, and documentation, and analyzed thematically through coding, theme development, review, and interpretation. The findings indicate that students’ religious information sources have expanded from conventional authorities to Google, YouTube, TikTok, social media, and AI. Repeated interaction with particular religious content contributes to patterns of digital echo chambers and may reinforce previously held beliefs, although it does not automatically result in religious polarization. Students demonstrate diverse responses to religious differences, including confusion, verification, dialogue, tolerance, and rejection of judgmental attitudes. The study’s originality lies in conceptualizing Islamic Education as a space for digital moderation navigation, integrating religious literacy, digital literacy, tabayyun, critical thinking, and dialogical engagement with religious differences. The study concludes that strengthening religious moderation requires transforming the role of PAI teachers from knowledge transmitters into facilitators who guide students in critically navigating fragmented digital religious information.