<![CDATA[Technological advancements, globalization, and social dynamics require educational systems to prepare learners with competencies relevant to the demands of the 21st century. Skills such as critical thinking, creativity, communication, and collaboration have become essential abilities that must be developed in the learning process. This study analyzes the response of Islamic education to the demands of 21st-century skills, assesses the readiness of Islamic educational institutions in developing these competencies, and identifies policies and programs that support their development. This study employs a qualitative approach using a library research method. Data were obtained from academic books, scholarly journal articles, and relevant educational policy documents. Furthermore, the data were analyzed using content analysis techniques to identify key concepts, previous research findings, and related patterns. The findings indicate that Islamic educational institutions need to undertake transformations in curriculum design, teaching methods, and educational management. Although the values of Islamic education support the development of critical and reflective thinking, several challenges remain, including limited teacher competence, suboptimal use of technology, and inadequate facilities and infrastructure. Therefore, integrated policies, competency-based curriculum development, teacher capacity building, and strengthened collaboration with various stakeholders are required.]]>
