Purpose – The implementation of Al-Islam and Kemuhammadiyahan (AIK) is a key characteristic of Muhammadiyah’s educational system. The implementation of AIK in Muhammadiyah schools still tends to focus on teaching the AIK subject and has not yet been fully and systematically integrated into school management functions. This study aims to develop a model for excellence in Muhammadiyah school management based on Al-Islam and Kemuhammadiyahan (AIK) through the integration of AIK values into the functions of planning, organizing, implementing, monitoring, and evaluating education. Method – This study employs a qualitative approach using a case study design at SMA Muhammadiyah 1 Palembang, an exemplary Muhammadiyah school. Data was collected through in-depth interviews with the principal, vice principal, AIK teachers, subject teachers, educational staff, students, and Muhammadiyah Association officials. Data was also obtained through observations of the school culture and document analysis. The data were analyzed using the interactive model developed by Miles, Huberman, and Saldaña, which includes data condensation, data presentation, and the drawing and verification of conclusions. Findings – The research findings indicate that AIK-based school management is implemented through the integration of AIK values into all functions of school management, including planning, organizing, executing, monitoring, and evaluating. This integration is realized through the alignment of the school’s vision, mission, and programs with AIK values; the division of tasks and coordination among all school components; learning, habit formation, exemplary behavior, and school culture; as well as supervision, monitoring, evaluation, and follow-up. Implications – The research findings indicate that the integration of AIK into school management supports the creation of an educational environment that fosters students’ character development, particularly in the areas of religiosity, integrity, discipline, responsibility, and social concern. Based on a synthesis of empirical findings, a model for excellent Muhammadiyah school management based on AIK was formulated, which positions AIK values as the foundation of governance and integrates them into the entire cycle of school management functions.