Digital transformation has reshaped Islamic education by changing knowledge transmission, learning methods, and access to religious information. Islamic boarding schools (pesantren), which have historically shaped the intellectual traditions of the Nusantara, face the challenge of adapting to technological developments while preserving their epistemological identity. The coastal region of the Malacca Strait has played a significant role in Malay Islamic civilization through interactions among knowledge, culture, and scholarly networks that fostered religious moderation. This article analyzes religious moderation within the digital education ecosystem of coastal pesantren along the Malacca Strait, focusing on transformation, challenges, and opportunities. This study employs library research using a systematic literature review approach, analyzing journal articles, academic books, Malay Islamic manuscripts, and policy documents on Islamic education digitalization and religious moderation. The findings indicate that digital transformation offers opportunities to strengthen religious digital literacy, develop innovative learning models, and disseminate moderate Islamic values through virtual spaces. However, challenges include shifts in religious knowledge authority, fragmented religious information, digital inequality, and limited educators’ digital competencies. Coastal pesantren have strategic opportunities to develop digital Islamic education models integrating Malay intellectual heritage, technological innovation, and religious moderation. Digitalization is therefore not merely technological modernization but an educational transformation that preserves inclusive, adaptive, and sustainable Islamic values.