Pesantren, as the oldest Islamic educational institutions in Indonesia, play a strategic role in preserving Islamic scholarly traditions while responding to global dynamics. Globalization, digitalization, and the Fourth Industrial Revolution require pesantren to adapt without losing their Islamic identity and local wisdom. This article aims to analyze pesantren’s strategies in balancing tradition and modernity, particularly through strengthening the role of kiyai, curriculum, organizational culture, and technology utilization. This study is a qualitative field study that collects data through observation at the research location, interviews with key respondents, and analysis of relevant internal documents. The study results indicate that integrated pesantren’s in Aceh Jaya manage the duality between tradition and modernity by preserving the core identity of yello book studies and the cultivation of strong moral character. This balance is explicitly realized through a curriculum integration strategy that blends religious sciences with general academic competencies and practical skills, producing a relevant and deeply rooted Wasatiyyah Islamic education model. The modernization of the pesantren depends on the strategic role of the kiyai's leadership as the primary filter; the pesantren’s authority instills the values of religious moderation and remains relevant amidst globalization without sacrificing its traditional identity. In conclusion, this study bridges the gap between theoretical frameworks and classroom application, offering valuable insights for educators to design more adaptive and effective learning environments. By highlighting these critical factors, the research not only advances the existing literature but also serves as a practical guide to foster student engagement and drive sustainable academic success.