Purpose – The integration of local wisdom by the Chinese ethnic group in Madura serves as an effective business strategy. It determines a venture’s success, particularly within a complex cultural context like Madura. An effective business strategy is a key determinant of enterprise success, particularly within complex cultural contexts such as Madura. Chinese Ethnic communities in Madura have developed business strategies grounded in local wisdom to ensure their ventures are accepted, adaptable, and successful. This study identifies and examines the forms of these strategies as employed by Chinese ethnic entrepreneurs in Madura.Method – Using a qualitative approach, this study draws on in-depth interviews with six Chinese ethnic traders in Madura, a BMT executive, 2 local employees, and 6 customers, complemented by observation and documentation. These six individuals are considered representative because their businesses are the most developed and their shops occupy strategic locations on the main street of Madura.Findings –The findings indicate that three main local wisdom-based strategies drive the business success of Chinese ethnic traders in Madura. First, they build strong relationships and networks with the local Madurese community. Second, they engage in cultural adaptation through the use of the local language, participation in social activities, and intermarriage with residents. Third, they establish partnerships with local entrepreneurs, creating mutually beneficial collaborations.Originality/value – This study provides original insights by examining how Chinese ethnic traders in Madura integrate local wisdom-based business ethics into their strategies. The research highlights the novel role of local wisdom as a support for effective business adaptation, offering valuable lessons for practitioners seeking to address local cultural challenges through similar approaches. Moreover, the role of local wisdom in supporting Islamic economic resilience and sustainability remains underexplored, as only a few studies or research discussions address this issue. Local wisdom serves not only as a means of cultural transfer but also as a means of knowledge transfer regarding Islamic economics, including banking, management, ethics, maqasid, fiqh muamalat, economic justice, and other related aspects