Introduction: Productive zakat has increasingly become an important instrument for poverty alleviation by transforming the role of zakat from consumptive assistance into a sustainable empowerment mechanism. The success of productive zakat programs depends not only on the provision of business capital but also on strengthening the capabilities of mustahik to improve their entrepreneurial competence, financial management, and economic independence. This study aims to analyze the empowerment of productive zakat through capacity strengthening in improving the welfare of mustahik at the National Amil Zakat Agency (BAZNAS) of Cirebon City and Cirebon Regency. Methods: This study employed a qualitative case study approach. Data were collected through in-depth interviews, observation, and documentation involving BAZNAS administrators, program facilitators, and productive zakat beneficiaries. The collected data were analyzed using the interactive model of data analysis, including data reduction, data display, and conclusion drawing to identify patterns of empowerment and their implications for mustahik welfare. Results: The findings indicate that productive zakat contributes positively to improving the economic welfare of mustahik through business capital assistance accompanied by entrepreneurial mentoring, financial literacy, and capacity-building activities. Strengthened capabilities enable beneficiaries to enhance business productivity, increase household income, and gradually achieve greater economic self-reliance. Nevertheless, differences in mentoring intensity, managerial capacity, and market accessibility remain challenges affecting the sustainability of productive zakat outcomes. Conclusion and Suggestion: The study concludes that strengthening the capabilities of mustahik is a fundamental component in optimizing the effectiveness of productive zakat programs. Sustainable mentoring, entrepreneurship development, and collaboration among stakeholders should be enhanced to maximize the long-term impact of zakat empowerment programs and support the transformation of mustahik into economically independent members of society