This study was motivated by the limited opportunities available for children to actualize their religious potential at the Islamic educational institutions TPQ Nahdlatush Shibyan and MDTU 04 Miftahul Huda in Pagerdawung Village, Ringinarum District, Kendal Regency. The study aimed to analyze the Festival Anak Sholeh (FAS) as a platform for actualizing children's religious potential through participatory and educational activities. A Participatory Action Research (PAR) approach was employed, comprising five stages: social preparation through human-centric communication, community research and social problem diagnosis, planning, political action, and reflection. Identification with partners revealed that while the children received regular religious instruction, they lacked an optimal space to openly practice and demonstrate their religious capabilities. This situation was addressed by organizing the FAS, which included training, preparatory sessions, and practical activities. The festival involved 100 children from TPQ Nahdlatush Shibyan and MDTU 04 Miftahul Huda, competing in three categories: memorization based on TPQ grade levels, Juz Amma memorization, and Tartil of the Qur’an. The findings indicate that the FAS served as a venue for children to actualize their religious potential by reading, memorizing, and reciting the Qur’an, as well as showcasing their Islamic knowledge in public. Children's involvement in the series of activities provided opportunities to practice, perform, compete positively, and receive appreciation for their abilities. Thus, the Festival Anak Sholeh functioned not merely as a competition, but as an educational and participatory space that enabled children to actualize their religious potential while strengthening the engagement of Islamic educational institutions and the community in fostering the children's religious development.