<![CDATA[Globalization has brought significant social, economic, technological, and cultural changes to Islamic educational institutions, including pesantren as the oldest form of education in Indonesia. These changes require pesantren to undertake institutional adjustments in order to remain relevant and competitive without losing their scholarly identity. This study aims to examine the institutional dynamics of pesantren in the global era by focusing on the challenges of institutional restructuring and educational innovation as adaptive strategies. The research employs a qualitative approach using a library research method, drawing on academic books, reputable national and international journal articles, and relevant policy documents published over the last seven years. The findings indicate that pesantren face various institutional challenges, including tensions between tradition and modernity, limitations in human and financial resources, and pressures to adapt to national educational regulations and standards. The direction of institutional restructuring tends toward strengthening more systematic, professional, and value-based governance while maintaining the central role of the kiai’s leadership. Furthermore, educational innovation in pesantren is manifested through the integration of religious and general knowledge within the curriculum, the utilization of digital technology in learning processes, and the strengthening of institutional networks and collaborations.]]>
