This study was motivated by the importance of teachers’ pedagogical competence in preparing teaching modules that are appropriate to students’ characteristics, abilities, and learning needs. The study aimed to analyze the Grade II teacher’s understanding of the importance of pedagogical competence in preparing a teaching module and to identify the obstacles encountered in applying pedagogical competence during the preparation process at SD Negeri 18 Pulau Morotai. This study employed a qualitative approach with a descriptive research design. Data were obtained through document analysis of a Grade II Indonesian Language teaching module and interviews with the Grade II homeroom teacher and the school principal. Data validity was established through source and technique triangulation, while data were analyzed using the Miles and Huberman interactive model, consisting of data reduction, data display, and conclusion drawing and verification. The findings showed that the teacher understood the importance of pedagogical competence in preparing the teaching module. This was reflected in the teacher’s ability to identify students’ characteristics, select appropriate learning models and strategies, formulate learning objectives, utilize learning media and technology, and prepare assessment, remedial, and enrichment activities. The main obstacles were related to adjusting the language, level of material difficulty, and learning presentation to the diverse abilities and characteristics of students. Thus, the teaching module reflected the application of pedagogical competence, although several components still need to be further developed and refined.
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