Artificial Intelligence (AI) has transformed education by enabling adaptive, personalized, and data-driven learning environments. In the context of Islamic education, however, the integration of AI presents both opportunities and challenges related to ethics, spirituality, and the preservation of humanistic educational values. This study aims to analyze the opportunities and challenges of AI implementation in Islamic education in the digital era and to formulate an ethical framework for its responsible integration. The study employed a qualitative approach using a library research design. Data were collected from books, scholarly articles, empirical studies, and other academic publications related to Artificial Intelligence, Society 5.0, digital pedagogy, and Islamic education. Data were analyzed using content analysis, including literature identification, thematic categorization, critical interpretation, and conceptual synthesis. The findings indicate that AI has the potential to enhance personalized learning, improve educational efficiency, strengthen digital literacy, and expand access to Islamic knowledge. Nevertheless, its implementation also raises challenges, including the digital divide, data privacy concerns, algorithmic bias, the dehumanization of education, and the decline of students' critical thinking skills. This study proposes Digital Adab as an ethical framework grounded in the principles of amanah (trustworthiness), tabayyun (verification), ‘adl (justice), ihsan (benevolence), hikmah (wisdom), and maslahah (public benefit). The successful integration of AI in Islamic education depends not only on technological advancement but also on balancing innovation with ethical reflection, pedagogical wisdom, and the holistic objectives of Islamic education.