The rapid development of digital technology presents both opportunities and challenges in shaping students’ character. Easy access to information and the uncontrolled use of technology can influence students’ attitudes, behaviors, and character values. Therefore, efforts are needed to strengthen students’ character in accordance with the values of the Pancasila Student Profile. One of the programs implemented within the Merdeka Curriculum is the Projek Penguatan Profil Pelajar Pancasila (P5) or the Project for Strengthening the Pancasila Student Profile. This study aims to analyze the effectiveness of P5 in shaping students’ character in the digital era. This study employs the Systematic Literature Review (SLR) method by examining various relevant literature related to the implementation of P5, character education, and learning challenges in the digital era. Data sources were obtained from scientific journals, books, research articles, and academic documents published in recent years. The review process was conducted through the stages of identification, selection, evaluation, and synthesis of literature that met the inclusion criteria, resulting in comprehensive and systematic findings. The findings indicate that the implementation of P5 is effective in supporting students’ character development through contextual, collaborative, and student-centered project-based learning activities. P5 contributes to the development of the dimensions of the Pancasila Student Profile, including mutual cooperation, independence, creativity, critical thinking, and social responsibility. Furthermore, the program helps students develop awareness of using digital technology wisely and responsibly. The effectiveness of P5 implementation is supported by the active involvement of teachers, schools, parents, and a conducive learning environment. Therefore, P5 serves as a relevant and effective strategy for strengthening students’ character, enabling them to face the challenges of the digital era while upholding Pancasila values.