School-Based Management (SBM) plays a crucial role in enhancing the effectiveness of madrasah governance and performance. However, in practice, community involvement is often limited to administrative and financial support, and thus has not yet fully functioned as a strategic force in the development of educational institutions. This study aims to analyze the concept of community participation in the implementation of SBM, identify its forms and roles in madrasah management, examine its contribution to improving madrasah performance in the era of modern education, and identify the factors that support and hinder community participation. The study employs a qualitative approach using library research, drawing from scientific journal articles, academic books, educational policy documents, and relevant prior research findings. Data were analyzed using content analysis techniques through the processes of identification, selection, categorization, interpretation, and synthesis of information. The study findings indicate that community participation in the implementation of MBS is realized through involvement in the planning, implementation, monitoring, and evaluation of educational programs, as well as by fulfilling the roles of advisory agency, supporting agency, controlling agency, and mediating agency. Such participation contributes to improved madrasah performance through strengthened governance, increased transparency and accountability, the development of innovation, expanded resource support, and enhanced public trust. Factors supporting community participation include participatory leadership, effective communication, community awareness of the importance of education, a culture of mutual cooperation, and the active role of the madrasah committee, while inhibiting factors include the community’s limited understanding of MBS, economic constraints, weak coordination, and the suboptimal functioning of the madrasah committee. The novelty of this research lies in the perspective that positions community participation as a catalyst for improving madrasah performance, rather than merely a supporting element for MBS implementation; thus, strengthening the partnership between madrasahs and the community becomes a crucial strategy in realizing effective, adaptive, and quality-oriented educational governance in the era of modern education. Keywords: Community participation, School-Based Management (SBM), madrasah performance, modern education.