<![CDATA[Children's literature serves as a powerful educational medium with significant potential for developing foundational literacy, emotional intelligence, and moral character among elementary school students. This study aims to analyze the role of children's literature both theoretically and practically in Bahasa Indonesia learning and character education at the elementary level, with attention to the alignment between literary content, students' cognitive and affective development, and appropriate pedagogical approaches. This research employs a literature review methodology, synthesizing peer-reviewed scientific sources published between 2022 and 2026 on the topics of children's literature, early literacy, and character education. Findings indicate that (1) children's literature simultaneously functions as a medium for language development and value cultivation; (2) the selection of developmentally appropriate literary texts significantly enhances student engagement and comprehension; and (3) the integration of children's literature within the Merdeka Belajar curriculum provides broader opportunities for teachers to creatively incorporate literary texts across disciplines. This study recommends strengthening teachers' competencies in selecting and utilizing children's literature, alongside developing literature learning strategies that are responsive to students' local cultural contexts.]]>
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