Productive zakat as an instrument for community economic empowerment has been widely studied; however, research that specifically discusses its implementation at Bank Perekonomian Rakyat Syariah (BPRS) in improving the welfare of mustahik remains limited. This study aims to analyze the implementation of productive zakat as business capital in improving the welfare of mustahik at BPRS Haji Miskin Pandai Sikek. This study employed a qualitative approach with a case study design, involving five informants consisting of BPRS managers and mustahik recipients of productive zakat selected through purposive sampling. Data were collected through in-depth interviews, observation, and documentation, and were then analyzed using the interactive analysis model of Miles, Huberman, and SaldaƱa, which includes data condensation, data display, and conclusion drawing. The results show that the distribution of productive zakat was implemented through a systematic mechanism, beginning with the identification of prospective recipients, selection, distribution of business capital, and continuing with regular assistance and supervision. This program contributed to improving the business capacity, income, and economic independence of mustahik, although the business development of each recipient showed different levels of achievement. These findings reinforce the concept of productive zakat as an instrument of economic empowerment in Islamic economics and broaden the understanding of the social role of BPRS in managing zakat funds. The conclusion of this study emphasizes the importance of continuous assistance in improving the effectiveness of productive zakat. The implications of the study include theoretical contributions to the development of Islamic economics studies and practical implications for BPRS and zakat management institutions in optimizing community economic empowerment programs. Keywords: Productive Zakat; Business Capital; Welfare of Mustahik; BPRS; Economic Empowerment
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