Indonesia's coastal areas face complex development challenges that often neglect ecological aspects and the socio-cultural values of local communities. This research examines coastal area development approaches that integrate local wisdom as a foundation for creating balance between economic growth, environmental conservation, and community social welfare. The research methodology employs a qualitative approach with case studies of coastal communities that still maintain local wisdom practices in natural resource management. Data were collected through participatory observation, in-depth interviews with community leaders, fishermen, and stakeholders, as well as analysis of coastal development policy documents. Research findings indicate that implementing local wisdom in coastal development provides significant contributions to: (1) coastal ecosystem preservation through sustainable resource management practices, (2) strengthening social cohesion and cultural identity of local communities, (3) enhancing community economic resilience through diversification of environmentally-friendly livelihoods, and (4) creating development models that are adaptive to climate change. These findings suggest that local wisdom serves not only as cultural heritage but also as practical solutions to address modern development dilemmas in coastal areas. This research recommends the need for integrating local wisdom into coastal development policies through stronger community participation mechanisms, legal recognition of traditional management systems, and capacity building of local communities in facing contemporary development challenges.