The modern era, characterized by rapid advances in digital technology, has led to an increase in sedentary lifestyles among children and adolescents, which has resulted in a decline in physical literacy—a crucial foundation for students’ affec-tive, cognitive, and psychomotor development. This study aims to analyze the role of traditional games in improving students’ physical literacy in the modern era through a literature review approach. The method used is a literature review em-ploying descriptive analysis techniques on various relevant articles, journals, and scientific literature. The findings indicate that traditional games such as engklek, gobak sodor, and hide-and-seek have been proven to holistically enhance stu-dents’ physical literacy, encompassing the physical, psychological, social, and cognitive domains. Furthermore, traditional games are effective in reducing sed-entary time, improving motor skills, physical fitness, motivation, and students’ self-confidence to actively engage in long-term physical activities. Traditional games also contribute to character building, the instillation of cooperative values, and the preservation of local culture. Thus, traditional games can serve as a contextual, relevant, and effective pedagogical approach in physical education at school to support the development of physical literacy among students growing up amidst the challenges of the modern era.
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