Sugarcane downstreaming has become an important strategy for increasing product value addition and strengthening rural economies. Selok Anyar Village, Lumajang Regency, possesses considerable sugarcane production potential; however, most of its harvest is still marketed as raw material, limiting the economic benefits received by local communities. This community service program aimed to strengthen the local economy through the implementation of Appropriate Technology (AT) integrated with community capacity building. The program adopted a participatory approach by providing three units of appropriate technology, consisting of a sugarcane crusher, a sugarcane juice evaporator, and a drying oven, complemented by training on palm sugar and liquid sugar production, marketing strategies, product branding and packaging, as well as technical assistance for equipment operation and maintenance involving the Mandiri Farmer Group and the Family Welfare Empowerment (PKK) organization of Selok Anyar Village. The implementation of appropriate technology improved the efficiency of sugarcane processing, enhanced participants' knowledge and technical skills in producing value-added products, and strengthened the community's capacity for business management and product marketing. Furthermore, the integration of technological innovation, capacity building, and institutional strengthening contributed to the development of a more sustainable sugarcane downstreaming system. These findings suggest that integrating appropriate technology with continuous mentoring provides an effective approach to strengthening community-based economic development founded on local resources.