<![CDATA[Introduction: Waste management in Indonesia’s urban and peri-urban areas increasingly relies on community-based facilities, yet their sustainability depends not only on technical capacity but also on social capital and active community participation. This article analyzes the role of social capital and community participation in community economic empowerment grounded in Islamic Social Entrepreneurship (ISE), through a case study of the Reduce-Reuse-Recycle Waste Processing Facility (TPS-3R) in Tambakrejo, Waru Sub-district, Sidoarjo Regency. Methods: This research employs a qualitative approach with a descriptive-explanatory case study design. Primary data were collected through in-depth interviews with the village head, the chairperson of KSM Guna Lestari, two neighborhood-unit (RW) heads, and waste-sorting and transport workers, supplemented by field observation and documentation of KSM’s 2024 financial reports. Results: Social capital is built through trust, norms of reciprocity, and cooperative networks reinforced by Islamic values, while community participation moves from an awakening stage toward collective capacity. This is reflected in the absorption of 16 local workers with a total monthly payroll of Rp37,914,583, and a recorded net income of Rp138,895,830.04 in 2024. Conclusion and suggestion: Social capital grounded in Islamic values is both a precondition and a driving force for the sustainability of a community-based economic empowerment model built on waste management. The study recommends strengthening local regulation, developing structured standard operating procedures for KSM management, and expanding future research through quantitative approaches such as Social Return on Investment (SROI) to measure the economic and social impact of this empowerment model in nominal terms.]]>
