This study aims to examine the transformation of Islamic Religious Education (PAI) in public universities in terms of strengthening religious moderation, academic ethics and students’ spiritual awareness. The method used is a literature review (library research) employing a descriptive-analytical approach through the synthesis of various relevant academic sources. The results of the study indicate that PAI education has strategic potential to transform from a normative and textual model into an integrative, contextual, and value-based model. This transformation encompasses three main dimensions, namely the strengthening of religious moderation through the internalisation of the values of tawasuth, tasamuh, i’tidal and musyawarah; the strengthening of academic ethics through the instilling of the values of honesty, trustworthiness and scientific responsibility; and the enhancement of spiritual awareness through a reflective approach and experiential learning. The research findings confirm that the integration of these three dimensions produces a strong synergy in shaping students’ well-rounded and balanced character. Religious moderation fosters an inclusive worldview, academic ethics cultivates moral integrity, and spiritual awareness provides depth of meaning to life. The success of transforming PAI learning requires support from various parties, including lecturers as facilitators of values, educational institutions through holistic curriculum policies, and the government in providing supportive regulations. This research makes a conceptual contribution in the form of an integrative framework for PAI learning that can serve as a reference for the development of religious education in public universities. The practical implications of this research are the need for PAI learning designs that are more dialogical, participatory and experience-based, as well as evaluations that measure not only cognitive aspects but also students’ affective and spiritual dimensions.