This study aims to analyze the influence of formal and informal education in the development of Islamic Psychology to improve community welfare, especially among Muslim communities in Yogyakarta City. Using a quantitative method with a survey approach, this study involved 300 respondents selected through a stratified random sampling method, including those who had experience in formal and informal faith-based education. Data was collected through a structured questionnaire that measured participants' perceptions of the impact of such education as well as their psychological well-being. The results of the analysis show that there is a significant positive relationship between formal and informal education in Islamic Psychology and psychological well-being. Formal education makes a strong contribution to the development of knowledge, while informal education, such as recitation and pesantren, plays a role in the formation of spiritual values that support individual well-being. The findings confirm the importance of integrating formal and informal education in the context of developing Islamic psychology to achieve better community well-being. This study also provides recommendations for educational institutions to further optimize the synergy between these two types of education.
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