Background. Contemporary global challenges such as excessive consumption, resource waste, environmental degradation, and social inequality require educational approaches that connect ethical values with responsible action. Islamic values of simplicity, anti-waste, and social concern offer a relevant moral foundation, yet their integration into systematic contextual learning remains limited. Purpose. This study aimed to develop and examine a contextual learning design based on Islamic values that integrates simplicity, anti-waste behavior, and social concern in responding to contemporary global and local challenges. Method. The study employed Educational Design Research involving 61 students of an Islamic Religious Education program at a private higher education institution in South Sumatra, Indonesia. Data were collected through expert validation, student response questionnaires, observation sheets, and value-based learning assessments, and analyzed using descriptive and inferential statistics.Novelty. The study proposes a Context Value Reflection Action (CVRA) instructional pathway that transforms Islamic values from normative concepts into contextual reasoning, critical reflection, and responsible action. Results. The developed design achieved high validity (Aiken’s V = 0.91), high practicality (87.0%), and strong implementation (91.4%). Students’ mean scores increased from 62.18 to 81.46, with a significant difference, t(60) = 14.82, p < .001, and a large effect size (d = 1.90). Anti-waste awareness showed the greatest improvement. Conclusion. The CVRA-based contextual learning design provides a promising framework for integrating Islamic values with sustainability and social responsibility, although long-term value internalization requires continuous practice and institutional reinforcement.