This study aims to analyze the effect of the Teams Games Tournament (TGT) cooperative learning model, supported by Dienes Blocks, on the subtraction skills of second-grade elementary school students. The novelty of this study lies in the integration of the Teams Games Tournament (TGT) model with Dienes Blocks as manipulative materials to create a concrete, cooperative, and game-based learning experience for subtraction. The study employed a quantitative approach using a quasi-experimental method and a pretest-posttest control group design. The study subjects consisted of 53 students, including 27 students in the experimental class and 26 students in the control class. Data were collected using a subtraction skills assessment test that met validity and reliability criteria. The results showed that the implementation of the Teams Games Tournament (TGT) model aided by Dienes Blocks had a significant effect on students’ subtraction skills (Asymp. Sig. (2-tailed) = 0.013 < 0.05). The average posttest score for the experimental class (95.41) was higher than that of the control class (90.69). In addition, the average N-Gain for the experimental class reached 0.766 (high category), while that of the control class was 0.551 (moderate category). These findings indicate that the Teams Games Tournament (TGT) model supported by Dienes Blocks is effective in improving the subtraction skills of lower-grade elementary school students and has the potential to serve as an alternative mathematics learning strategy that supports the improvement of students’ arithmetic skills.