The development of critical thinking skills has become an important objective of Pancasila Education in the implementation of the Merdeka Curriculum. However, learning practices in Madrasah Ibtidaiyah are still often teacher-centered and provide limited opportunities for students to engage in problem analysis, argumentation, and decision-making. This study aimed to explore the implementation of contextual Problem Based Learning (PBL) in Pancasila Education and its contribution to the development of students' critical thinking skills. A qualitative case study design was employed at MIS Ar Raudlah Sukorambi Jember. Data were collected through semi-structured interviews, classroom observations, and document analysis involving the principal, Pancasila Education teacher, and fifth-grade students. Data were analyzed using the interactive model of Miles, Huberman, and SaldaƱa, while data validity was ensured through source and technique triangulation. The findings reveal that teachers designed contextual PBL through five interconnected strategies: formulating learning objectives, selecting authentic problems, organizing collaborative learning, providing scaffolding, and conducting reflection. The implementation of contextual PBL facilitated the development of critical thinking skills reflected in the indicators of clarification, evidence-based reasoning, inference, explanation, and decision-making based on Ennis' framework. The study also identified institutional support, teacher competence, authentic problems, and student collaboration as supporting factors, while limited instructional time, diverse student abilities, and classroom dynamics emerged as challenges. These findings highlight the importance of integrating contextual learning and problem-based instruction to foster critical thinking in Islamic elementary education.
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