Slang is a linguistic phenomenon that is closely related to the creativity of young people in language, the more difficult it is created, the more secret the communication used. Slang often appears in a large group to small groups, no exception in a group of young people in Islamic educational institutions that use Arabic as the language of instruction in everyday life, of course this is a major influence on the emergence of slang among students. This study aims to describe the process of Arabic slang word formation found in speakers in modern Islamic boarding schools and explore the function of Arabic slang in the pesantren environment. This research uses a qualitative approach with data collection methods through interviews and direct observations of santri who are designated as informants. The informants used in this study have specific requirements such as: 1) Is a student at the Modern Islamic Boarding School, 2) The source of research data is daily speech used by students in modern Islamic boarding schools, while the specific data is in the form of words. Data analysis is done through three stages, namely: (1) data reduction, (2) data classification and presentation, and (3) conclusion drawing. The results of the analysis are presented using informal and formal methods. The results show that Arabic slang words used by modern boarding school students include ordinary slang, acronyms, and abbreviations, with the formation process in the form of phoneme deletion, syllable deletion, phoneme addition, reversal, and deletion. These slang words function to facilitate pronunciation, express curses, express emotions such as anger, confusion, and surprise. This study provides a comprehensive analysis of the formation process of Arabic slang in modern Islamic boarding schools, contributing to the understanding of linguistic creativity among youth in educational settings. The study is limited to a specific demographic (students aged 13-17 in modern Islamic boarding schools), which may not represent the broader Arabic-speaking youth population. For future researchers, it is hoped that they can find new slangs in other educational institutions, so that there are many variations of linguistic phenomena that can be studied and can be learned by the general public, so as to reduce misunderstandings of communication between teenagers in modern boarding schools and the community.