Technological disruption in the digital age presents complex challenges for Islamic Religious Education (PAI) in shaping pupils’ Islamic character, whilst simultaneously opening up innovative opportunities for strengthening moral values through digital media. This study aims to critically analyse the implementation of moral and digital ethics education in PAI lessons in schools, as well as to identify the challenges and strategies for strengthening Islamic character amidst technological disruption. The method employed was a literature review using a qualitative-descriptive approach, in which data were collected through the search, identification, analysis and synthesis of various relevant academic sources. The research findings indicate that the implementation of digital ethics and moral education in PAI has been carried out through various models, such as the integration of Islamic values into technology-based learning, teachers serving as exemplary role models (uswah hasanah), the utilisation of digital platforms for daily moral guidance, and strategic collaboration between schools and parents. However, this implementation still faces significant challenges, including low digital literacy among PAI teachers, technological distractions that divert pupils’ attention, a lack of supervision from parents and teachers, exposure to negative content, and social media addiction that hinders the internalisation of moral values. The recommended strategies for strengthening Islamic character include the integration of Islamic values into every digital learning activity, strengthening teachers’ role as role models in the digital space, the development of digital literacy grounded in Islamic values covering cognitive, technical, ethical and spiritual dimensions, close collaboration between schools and families, and the application of a reflective-dialogic learning approach that emphasises critical discussion of digital ethical dilemmas. Through a comprehensive, holistic and sustainable approach, Islamic Religious Education (PAI) can be transformed from merely the transfer of religious knowledge into a vehicle for character development that equips learners with digital competencies and ethical awareness to become responsible digital citizens of noble character who contribute positively to society in the Society 5.0 era.