The goal of Islamic education, which includes character education, is to produce Muslims who are devoted to their faith, have good moral character, and can handle the difficulties of life with grace and dignity. A number of moral issues, including a decrease in honesty, responsibility, and social awareness, have emerged among today's youth as a result of fast technological growth, globalisation, and increasingly complicated societal developments. Consequently, character education needs to be fortified by investigating value-based foundations. One of the many character education lessons found in the Qur'an—the main source of Islamic teachings—can be found in Surah Yusuf, verses 36–42, which relate the narrative of Prophet Yusuf (Joseph) and two young men while he was in prison. The purpose of this research is to examine the relevance of Surah Yusuf verses 36–42 to modern Islamic curricula and the idea of character education they present. The thematic interpretation (tafsir maudhu'i) method and library research are the tools of this qualitative study's toolbox. Verses 36–42 of Surah Yusuf served as the primary source of data, while commentaries on the Qur'an, books, journals, and other pertinent literature were consulted for secondary data. The results show that the six fundamental character traits found in Surah Yusuf verses 36–42 include reverence, candour, openness to new ideas, responsibility, and a communicative approach. Prophet Yusuf's behaviour in preaching, dream interpretation, and interactions with fellow inmates reflects these principles. The study found that verses 36–42 of Surah Yusuf, which deal with character education, are still applicable to modern Islamic education. They can help lay the groundwork for producing students who are upright in character, responsible, and able to face modern problems while staying true to Islamic principles