This study examined whether peer-group relational context moderates the association between self-perceived Islamic religious understanding and student religiosity. A quantitative cross-sectional correlational design involved 99 eighth-grade students at Muhammadiyah 5 Junior High School Yogyakarta. Three four-point self-report instruments assessed self-perceived religious understanding, peer-group relational context, and multidimensional religiosity. Internal consistency was acceptable to good (Cronbach’s α = .857, .852, and .873, respectively). Self-perceived religious understanding was positively associated with religiosity (r = .501, 95% CI [.337, .636], p < .001), as was peer-group relational context (r = .378, 95% CI [.195, .535], p < .001). The main-effects regression model was significant, F(2, 96) = 25.020, p < .001, R² = .343. Adding the interaction term increased explained variance by ΔR² = .013, but the increment was not statistically significant, F-change(1, 95) = 1.89, p = .172. Thus, the evidence supports additive associations of perceived religious understanding and peer relational context with religiosity, but not the hypothesized moderation effect. By distinguishing self-perceived understanding from objective knowledge and peer relational quality from peers’ religiosity, the study provides a more precise interpretation of how cognitive and social correlates relate to student religiosity in Islamic education. These findings highlight the importance of fostering both students’ religious understanding and supportive peer environments while encouraging future research to examine broader contextual factors that may shape religiosity development across diverse Islamic educational settings.