Moral education based on the Koran and Hadith has an important role in forming the character of early childhood. This research aims to explore the application of interactive methods based on the Koran and Hadith in the formation of morals in early childhood. This research method uses literature study to collect secondary data from various sources related to the research topic, such as journals, books and proceedings. Data analysis was carried out in three stages: organizing relevant literature, synthesizing study results to look for connections between literature, and identifying important information needed to achieve research objectives. The results of the study show that moral education based on the Al-Qur'an and Hadith is able to form good moral behavior, such as honesty, patience and compassion, in children. Interactive methods, such as storytelling, educational games, and reflective dialogue, have proven effective in instilling these moral values. Applying this method not only teaches Islamic values, but also improves children's social skills and religious awareness. However, there are challenges in implementing this method, including limited resources, teacher competence, and differences in children's characters. Intensive training is needed for educators to increase the application of interactive methods based on the Koran and Hadith. Collaboration between parents and schools is also important to strengthen the moral development of early childhood optimally and holistically
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