<![CDATA[The development of the digital economy provides opportunities for Micro, Small, and Medium Enterprises (MSMEs) to expand their marketing activities, facilitate transactions, and reach a wider range of consumers. However, the use of digital technology needs to be accompanied by the implementation of Islamic economic principles so that business activities remain based on honesty, trustworthiness, fairness, transparency, and halal practices. This study aims to analyze the utilization of the digital economy among MSMEs in Grujugan District, Bondowoso Regency, and examine its implementation from an Islamic economic perspective. This study employs a descriptive qualitative approach using field research. Data were collected through interviews, observations, and documentation involving five MSME owners as research informants. The data were analyzed through data reduction, data presentation, and conclusion drawing. The findings indicate that MSMEs in Grujugan District have utilized digital media such as WhatsApp, Facebook, Instagram, and TikTok for marketing and communication with consumers, as well as beginning to adopt digital payment systems. Digitalization provides benefits in terms of easier promotion, wider market reach, and more convenient transactions. From an Islamic economic perspective, business practices demonstrate the implementation of honesty, trustworthiness, transparency, and fairness. However, challenges remain, particularly limited digital literacy and understanding of Islamic economic principles. Therefore, increased digital training and Islamic economic education are needed to support the development of competitive MSMEs that remain consistent with Islamic principles. Keywords: digital economy, MSMEs, Islamic economics, digital marketing, Grujugan, Bondowoso.]]>
