<![CDATA[Sustainable economic development requires financing instruments that not only promote economic growth but also ensure social justice and equitable welfare distribution. In the context of a Muslim-majority country such as Indonesia, zakat and Islamic finance possess strategic potential to address these challenges. Although the growth of Islamic financial assets and national zakat collection has shown a positive trend, both sectors are still managed relatively separately, resulting in suboptimal synergy. This study aims to analyze the potential and mechanisms for integrating zakat and Islamic finance in supporting sustainable economic development. This research adopts a qualitative approach with a descriptive-analytical design, employing policy document analysis, official institutional reports, and in-depth interviews with zakat managers, Islamic financial institutions, zakat payers (muzakki), and zakat beneficiaries (mustahik). The data were analyzed using content analysis and thematic analysis to identify integration patterns, impacts, and implementation challenges. The findings indicate that Indonesia has substantial potential to integrate zakat and Islamic finance through productive zakat management within Islamic financial institutions, particularly in the form of microfinance, business mentoring, and the utilization of digital technology. This integration contributes to increased income among beneficiaries, strengthened microenterprise independence, and expanded financial inclusion for vulnerable groups, which aligns with the objectives of sustainable development. The implications of this study highlight the importance of strengthening Islamic financial literacy, enhancing inter-institutional coordination, and providing adaptive regulatory support to ensure that the integration of zakat and Islamic finance functions optimally as an instrument of sustainable and equitable Islamic economic development.]]>
