Abstrak UMKM memegang peranan penting dalam perekonomian nasional. Namun pada era Society 5.0 seperti saat ini, UMKM harus menghadapi tantangan dalam pemanfaatan teknologi digital dan inovasi produk. Kegiatan pengabdian masyarakat ini bertujuan untuk meningkatkan kemampuan pelaku UMKM melalui kegiatan pelatihan dan pendampingan. Metode yang digunakan adalah Challenge Based Learning (CBL), di mana metode ini mendorong pelaku UMKM dalam mengidentifikasi masalah yang dihadapi, merancang solusi, dan mengimplementasikan solusi tersebut di bisnis mereka. Kegiatan pengabdian masyarakat ini meliputi pelatihan inovasi produk dan pelatihan strategi digital marketing. Kegiatan ini dilaksanakan pada pelaku UMKM kerajinan rumah tangga. Hasil kegiatan ini menunjukkan bahwa melalui pendekatan Challenge Based Learning (CBL) yang diterapkan dapat membantu pelaku UMKM dalam menemukan solusi terbaik untuk usahanya, salah satunya melalui pemanfaatan  platform media sosial. Kegiatan ini juga berhasil meningkatkan kemampuan pelaku UMKM baik secara strategis maupun teknis. Melalui pelaksanaan kegiatan ini, tidak hanya berimbas pada peningkatan kemampuan individu saja, tetapi juga berkontribusi dalam memperkuat daya saing UMKM di pasar digital yang makin kompetitif. Kata kunci: UMKM; pemasaran digital; inovasi produk; media sosial; challenge based learning Abstract MSMEs play an important role in the national economy. However, in the current era of Society 5.0, MSMEs must face challenges in utilizing digital technology and product innovation. This community service activity aims to improve the capabilities of MSME actors through training and mentoring activities. The method used is Challenge Based Learning (CBL), where this method encourages MSME actors to identify problems faced, design solutions, and implement these solutions in their businesses. This community service activity includes product innovation training and digital marketing strategy training. This activity was carried out on MSME household craft actors. The results of this activity show that through the Challenge Based Learning (CBL) approach that is applied, it can help MSME actors find the best solutions for their businesses, one of which is through the use of social media platforms. This activity also succeeded in improving the capabilities of MSME actors both strategically and technically. Through the implementation of this activity, it not only has an impact on improving individual capabilities, but also contributes to strengthening the competitiveness of MSMEs in the increasingly competitive digital market. Keywords: SMEs; digital marketing; product innovation; social media; challenge based learning