<![CDATA[Islamic boarding schools (pesantren) have a strategic role not only as Islamic educational institutions, but also as centers of social and economic empowerment for the surrounding community. In response to the need for institutional sustainability, pesantren are required to develop economic independence through productive and professionally managed business activities. One of the strategies implemented is the establishment of a Foundation-Owned Business Entity (Badan Usaha Milik Yayasan / BUMY), which functions as an instrument to strengthen financial independence and support educational development. This study aims to analyze the development model of pesantren economic independence through BUMY at Pondok Pesantren Miftahul Ulum Lumajang. This research uses a qualitative method with a case study approach. Data were collected through observation, in-depth interviews, and documentation involving foundation administrators, business unit managers, students, alumni, and relevant community actors. The findings show that BUMY contributes to creating alternative sources of income for the pesantren through several business units, including supermarkets, agriculture, livestock farming, and laundry services. The management of these business units also involves students and alumni, thereby supporting entrepreneurship education and strengthening practical economic skills. However, the development of BUMY still faces several challenges, particularly limited capital, managerial capacity, digital marketing, and product competitiveness. These challenges can be addressed through capacity-building programs, professional governance, innovation, and strategic partnerships with external stakeholders. The study concludes that BUMY can serve as an effective model for developing pesantren economic independence when supported by Islamic values, professional management, and sustainable collaboration. Nevertheless, further research is needed to measure its long-term impact and examine the possibility of replicating this model in other pesantren with different institutional and socio-economic characteristics. ]]>
