In the context of a pluralistic society, Islamic education is required to be able to form tolerant and inclusive characters, and create a learning environment that is not only religious, but also emphasizes the aspect of diversity. And some madrasas still position da'wah as a religious ritual, whereas in essence da'wah as the core of Islamic teachings has the potential to be an integral part of the education system, not only limited to religious activities, but also as a means of character formation and creating a harmonious life in a multicultural society. The approach used is descriptive qualitative with a phenomenological research type, through in-depth interview techniques, participatory observation, and documentation. This study aims to examine the inclusive institutional development model through the integration of da'wah in the process of transforming multicultural Islamic education in Madrasah Ibtida'iyyah, with a focus on a case study at MI Ma’arif Kedung Solo, Porong, Sidoarjo, East Java. The results of the study indicate that the integration of da'wah has been substantively realized in various institutional activities in madrasas, such as in the curriculum, school culture, and the role of teachers as agents of multicultural da'wah. This study also formulates an institutional development model that places da'wah as a transformative element in creating a learning environment that is friendly to diversity and encourages the participation of all madrasah residents. Thus, madrasahs are not only centers of religious learning, but also centers of civilization that foster solidarity, respect differences, and strengthen the values of Islam rahmatan lil 'alamin.
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