Strengthening local wisdom-based strategic management in elementary schools is important for improving educational quality, preserving cultural identity, and fostering students’ character amid globalization. However, evidence regarding its implementation and contribution to character development and students’ competitiveness remains fragmented. This study systematically synthesizes evidence on the implementation of local wisdom-based strategic management in elementary schools and examines its contribution to character development and student competencies. A Systematic Literature Review was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses 2020 guidelines. Relevant studies published between 2020 and 2026 were identified through Scopus, Google Scholar, Crossref, and Garuda. After applying predefined inclusion and exclusion criteria and conducting methodological quality appraisal using the Joanna Briggs Institute Critical Appraisal Checklist, 30 studies were included in the synthesis. Data were coded and analyzed using thematic synthesis, producing four themes: integration of local wisdom into school vision, mission, curriculum, and organizational culture; strategic leadership and stakeholder collaboration; contributions to character development and competencies; and implementation challenges and supporting factors. The findings show that local wisdom-based strategic management strengthens discipline, responsibility, cooperation, integrity, cultural awareness, and social responsibility while creating culturally responsive and sustainable learning environments. These character attributes also support students’ readiness to face future educational and societal challenges. Effective implementation depends on visionary school leadership, teacher professionalism, supportive policies, adequate learning resources, and collaboration among schools, families, and local communities. The review concludes that local wisdom-based strategic management provides an evidence-based framework for strengthening character education and supporting students’ competencies in elementary schools.