This study aims to analyze character education based on Islamic values and Indonesian national values, while identifying the points of convergence between the two value systems. Character education within the Kurikulum Merdeka (Independent Curriculum) is not solely oriented toward cognitive achievement but also emphasizes the development of students who possess faith, noble character, global diversity awareness, cooperation, independence, critical thinking skills, and creativity. This research seeks to examine the implementation of Islamic-based and Indonesian-based character education within the dimensions of the Kurikulum Merdeka graduate profile and to identify the integration of these values in shaping students’ character. This study employs a qualitative approach using a literature review method through the analysis of relevant scientific articles, educational policy documents, and conceptual references. The findings indicate that Islamic values, including tauhid (faith in the oneness of God), trustworthiness (amanah), justice (‘adl), compassion (rahmah), excellence (ihsan), noble character (akhlaqul karimah), religious moderation, and the concept of rahmatan lil ‘alamin (a blessing for all creation), are substantively aligned with Indonesian values such as Pancasila, diversity, mutual cooperation (gotong royong), patriotism, and social responsibility. The integration of these values can be implemented through intracurricular learning activities, projects aimed at strengthening the student profile, school or madrasah culture, habituation of religious practices, teacher role modeling, authentic assessment, and collaboration among schools, families, and communities. Therefore, the ideal graduate profile of the Kurikulum Merdeka should not only demonstrate academic excellence but also embody religiosity, moderation, nationalism, adaptability, critical thinking, creativity, and civilized character.