This study examines the phenomenon of internal conflict management in Islamic boarding schools (pesantren), which unexpectedly gave rise to new branches as a result of the dynamics of division and reconciliation within the traditional Islamic educational community in Indonesia. Through a systematic literature review of 40 scholarly sources published between 2021 and 2024, this study analyzes patterns of conflict between kiai (Islamic boarding school teachers), senior santri (students), and pesantren families; conflict resolution mechanisms based on local Islamic wisdom; and the dynamics of conflict transformation into pesantren institutional expansion. The study's results indicate that constructively managed internal pesantren conflict has the potential to become a catalyst for the proliferation of new pesantren institutions, expanding the network of Islamic education in Indonesia. The values of moderation, deliberation, and the wisdom of local ulama have proven to be important instruments in the process of transforming conflict into opportunities for institutional development. The implications of this research provide a framework for developing conflict management based on Islamic values that is adaptive to the needs of pesantren expansion in the modern era.
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