The growing emphasis on 21st-century learning challenges Islamic Religious Education (IRE) to recognize and develop students’ diverse abilities beyond conventional academic achievement. Although previous studies have examined Multiple Intelligences and 21st-century competencies, limited attention has been given to how teachers facilitate the development of diverse student potential into contemporary learning competencies within Islamic boarding schools. This study aims to examine how Multiple Intelligences-oriented IRE supports the development of 21st-century competencies and to explore the role of teachers in facilitating this process. A qualitative multi-site study was conducted at BIN BAZ Islamic Boarding School and Jamillurrahman Islamic Boarding School, Yogyakarta, involving 12 participants consisting of IRE teachers and students. Data were collected through semi-structured interviews, non-participant observations, and document analysis, and were analyzed through thematic coding, categorization, interpretation, and cross-site comparison. The findings indicate that students’ potential is multidimensional and cannot be adequately represented by academic achievement alone. Students demonstrated diverse strengths in Qur’anic memorization, communication, creativity, participation, collaboration, confidence, leadership, and responsibility. These abilities were observed to be associated with varied learning opportunities, teacher guidance, peer interaction, repeated practice, and student involvement in classroom, religious, and extracurricular activities From these empirical patterns, the study reconstructs a four-stage qualitative pattern comprising recognition, activation, development, and transformationthat illustrates how students’ diverse potential aligns with meaningful 21st-century competencies. The study contributes empirical insight into how teacher mediated learning environments can connect diverse student potential with competency oriented Islamic education and provides practical implications for more inclusive and learner centred Islamic education.