Background: This study examines the effectiveness of storytelling methods in internalizing Islamic moral values among children aged 5-6 years in Integrated Islamic Early Childhood Education (PAUD Islam Terpadu) institutions. Objective: The research addresses the challenge of developing character education that integrates Islamic teachings with developmentally appropriate practices in early childhood settings. Method: Using a mixed-methods approach combining classroom observations, teacher interviews, and moral comprehension assessments, this study involved 120 children from six PAUD Islam Terpadu institutions in urban Indonesia. Data were collected through structured observation protocols, semi-structured interviews with 18 teachers, and pre-post moral understanding tests administered over a 12-week intervention period. Findings and Implications: Results indicate that storytelling methods incorporating Islamic narratives significantly enhanced children's understanding and internalization of moral values, with mean scores increasing from 2.45 to 4.12 (p<0.001) on the Islamic Moral Comprehension Scale. Thematic analysis revealed four key mechanisms: narrative engagement, prophetic role modeling, emotional connection, and cultural-religious contextualization. Conclusion: The study demonstrates that culturally grounded storytelling approaches effectively bridge abstract Islamic moral concepts with concrete early childhood experiences. Implications suggest that PAUD Islam Terpadu institutions should systematically integrate narrative pedagogy with Islamic values education, while teacher preparation programs must emphasize storytelling competencies within Islamic educational frameworks.
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