The increasingly competitive environment in the Micro, Small, and Medium Enterprises (MSME) sector requires business actors to build a strong brand image as a strategy for maintaining customer loyalty. This study aims to analyze the mechanism of customer loyalty formation through a brand image strategy based on local identity and Islamic marketing values in traditional MSMEs, taking the case of UD. Langgeng Makmur, a shrimp petis producer in Gumeng Village, Gresik, which has been operating for more than two decades. Using a qualitative case study approach, data were obtained through observation, in-depth interviews, and documentation involving the owner, employees, and customers. Analysis was conducted using the Miles, Huberman, and Saldana model. The findings reveal four mutually reinforcing pillars of brand image strategy: (1) consistent product quality tailored to customer segments; (2) packaging innovation with the "Udang Lombok" brand identity; (3) reinforcement of Gumeng Village's local identity as a shrimp petis production center; and (4) relational, responsive, and personalized service. These four pillars are carried out within the framework of Islamic marketing values: honesty (shiddiq), trustworthiness (amanah), information transparency, and halal assurance, which strengthen consumer trust and create sustainable loyalty. The theoretical contribution of this study lies in the elaboration of the integration between brand image strategy, local identity, and sharia principles as a customer loyalty model relevant to traditional MSMEs in Indonesia