Arabic is often perceived as a symbol of radicalism in Indonesia, despite being the sacred language of the Qur’an and a key to understanding Islamic teachings. In a diverse society like Indonesia, Arabic language education has strong potential to promote tolerance, pluralism, and nationalism, especially when integrated with a multicultural approach. Universitas Yudharta Pasuruan, rooted in pesantren traditions and committed to diversity, serves as a model for cultivating inclusive and humanistic character through Arabic learning. This study aims to: (1) analyze the concept and implementation of multicultural values internalization in Arabic language education, and (2) identify the multicultural values reflected in the process. Using a qualitative case study method, data were collected through interviews, participatory observation, and document analysis, with the researcher as the primary instrument. Data were analyzed using the Miles, Huberman, and Saldaña model, supported by triangulation. The findings show that multicultural values are internalized holistically through institutional policy, curriculum integration, contextual strategies like Project-Based Learning (PBL), student involvement, and pesantren culture. Values such as tolerance, equality, cooperation, and openness are embedded in the learning process, positioning Arabic education as an effective medium for shaping inclusive, democratic, and civilized individuals in a multicultural context.