<![CDATA[Student pesantren represent a hybrid Islamic education ecosystem where character formation is embedded within dual academic and religious trajectories; however, empirical studies rarely examine how value internalization operates within such liminal educational settings. Purpose: This study aims to analyze the internalization of character values among university student or santri at Budi Mulia Student Pesantren Yogyakarta, focusing on discipline, independence, system flexibility, and leadership formation. Methods: A qualitative instrumental case study design was employed. Data were collected through semi-structured interviews, non-participant observation, and document analysis involving active santri and alumni selected via purposive sampling. Data were analyzed using thematic analysis with iterative coding, triangulation, and member checking to ensure trustworthiness. Findings: The results indicate that discipline and independence are internalized through structured habituation, time governance, and integration of academic pesantren routines. The flexible institutional system enables adaptive self-management across dual educational demands. Alumni narratives further reveal that sustained value internalization contributes to leadership capacity through organizational engagement and post-graduation social roles. Implications: Student pesantren function as transformative ecosystems for holistic character development, although findings remain context-bound to a single institution, requiring broader comparative studies. Originality: This study advances a process-oriented model of value internalization within dual-system pesantren education, linking disciplinary ecology, institutional flexibility, and leadership emergence.]]>
