Purpose: This community service program aims to strengthen the capacity of the Pasiraman Village community in three key areas: character education for school-age children, household waste management through a waste bank system, and economic empowerment via training in the production of eco-friendly dish soap. The program was designed to address local needs while fostering behaviors and skills that support sustainable village development. Method: The activity employed a Community-Based Research (CBR) approach, emphasizing active community participation throughout the process. It was implemented by students from UIN Sayyid Ali Rahmatullah Tulungagung during a 40-day community service program in Pasiraman Village, Talun District, Blitar Regency. Methods included observation, informal interviews, interactive education, hands-on training, and qualitative evaluation. Each activity was tailored to specific community groups: elementary school students, housewives, and youth organizations. Practical Applications: The program produced several tangible impacts. Elementary students demonstrated improved learning motivation and understanding of moral values. The community began adopting waste-sorting habits and recognized the economic potential of waste banks. Housewives gained new skills in producing environmentally friendly dish soap and explored opportunities for small-scale home-based businesses. Active community participation served as a key indicator of the program’s success. Conclusion: This community engagement initiative shows that an educational–participatory approach effectively enhances awareness, skills, and collaborative spirit among rural communities. Through strong synergy between students and residents, the program not only provided short-term benefits but also fostered sustainable behavioral change and local self-reliance. This initiative serves as a best-practice model that can be replicated in other villages using a similar participatory framework.