This study was motivated by the importance of implementing Islamic Religious Education (IRE) based on the Merdeka Curriculum to support the development of students’ creativity and entrepreneurial skills in vocational high schools. The Merdeka Curriculum provides teachers with greater flexibility to design contextual learning experiences that are student-centered and capable of integrating Islamic values with 21st-century competencies. This study aims to describe the implementation of IRE learning based on the Merdeka Curriculum, explain its contribution to the development of students’ creativity and entrepreneurship, and identify the supporting and inhibiting factors in its implementation at Sultan Agung 1 Vocational High School, Tebuireng, Jombang. This research employed a qualitative approach with a case study design. Data were collected through observations, in-depth interviews with the principal, vice principal for curriculum affairs, Islamic Religious Education teachers, and students, as well as documentation. Data analysis was conducted through data reduction, data display, and conclusion drawing. The findings reveal that the implementation of IRE learning based on the Merdeka Curriculum has been carried out effectively through the use of flexible teaching modules, the application of interactive learning methods such as Project-Based Learning, and the strengthening of students’ religious character and independence. The development of creativity and entrepreneurship was fostered through various contextual projects integrating Islamic values with entrepreneurial practices, thereby enhancing students’ participation, innovation, and interest in entrepreneurship. Supporting factors include teacher competence, adaptive school policies, curriculum flexibility, and students’ enthusiasm. Meanwhile, inhibiting factors consist of limited instructional time, inadequate supporting facilities, varying levels of teacher readiness, and restricted access to technology. Therefore, the implementation of IRE learning based on the Merdeka Curriculum contributes positively to shaping creative, independent, Islamic-minded students with strong entrepreneurial character.