Islamic education emphasizes holistic development that includes cognitive, affective, and psychomotor aspects, with the aim of forming individuals who are intellectually intelligent and moral. This study examines the integration of Problem-Based Learning (PBL) with Islamic practices in the context of formal education, through a systematic review guided by the PRISMA framework of 42 Scopus-database articles from 2014 to 2024. This study aims to answer three main research questions, namely: (1) what are the forms of PBL integration in Islamic practices in formal education, (2) the impact of PBL integration on educational outcomes, and (3) the impact of PBL integration on students' religious engagement. Key findings from the literature include the identification of four main forms of integration, including curriculum design, interdisciplinary learning, character education, and digital contextual learning. These approaches significantly contributed to the improvement of students' religious understanding, skills and practices. The results of the review show that PBL integration in Islamic education can improve the quality of education by linking theory and practice, and developing students' character and skills. In addition, it has a significant impact on students' understanding, thinking skills (HOTS), and positive attitude towards learning, as well as strengthening religious engagement through increased active participation, deep understanding, and social engagement. The implications of this study suggest that PBL can effectively prepare students for the intellectual and ethical challenges in their lives.