The low understanding of students regarding Pancasila values in Pancasila Education learning at Grade VII of SMP Negeri 23 Malang is a problem that requires innovative solutions. This study aimed: (1) to describe the implementation of local value-based digital storytelling; (2) to improve student learning activity; and (3) to enhance students' understanding of Pancasila values. This study employed a Classroom Action Research (CAR) design using the Kemmis and McTaggart model, conducted in two cycles. The subjects were 32 students of class VII-4 at SMP Negeri 23 Malang in the academic year 2024/2025. Data were collected through structured observation, written essay tests, and student reflection sheets. Data validity was maintained through source and technique triangulation. Data analysis used descriptive qualitative and quantitative techniques. Results showed an increase in the average student score from 68 (pre-cycle) to 78 (cycle I) and 86 (cycle II), with classical completeness rising from 40.6% to 90.6%. Student learning activity improved from 37.8% in the pre-cycle to 88.6% in cycle II. Therefore, local value-based digital storytelling is proven effective in improving students' understanding of Pancasila values meaningfully and contextually.
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