Fundamental motor skills (FMS) are an essential component of physical education in elementary schools; however, their development requires active, enjoyable, and contextually relevant learning activities. This Community Service (PKM) activity aimed to support the improvement of physical education teachers’ conceptual understanding, students’ learning engagement, and students’ fundamental movement skills through a Traditional Games Festival as part of the 2025 Thematic Student Community Service (KKN-T) program. The program employed a participatory approach through practical guidance and a traditional games festival involving 135 participants, including elementary school students, physical education teachers, field supervisors, and university students from the Physical Education, Health, and Recreation Study Program at STKIP Citra Bakti. Evaluation employed a pretest–posttest design. The results showed that teachers’ conceptual understanding increased from 62.33% to 85.67% (23.34 percentage points), students’ learning engagement from 64.64% to 90.52% (25.88 percentage points), and students’ FMS from 62.68% to 83.71% (21.03 percentage points). These findings indicate positive changes following the program and suggest that a Traditional Games Festival has the potential to support active, enjoyable, and contextually relevant physical education learning.