<![CDATA[Institutional transformation has become an important strategy for Islamic educational institutions to maintain their existence while adapting to social dynamics and national educational policies. Although studies on the development of Islamic boarding schools have been widely conducted, research that specifically examines the historical transformation from a madrasah into a modern Islamic boarding school at the local level remains limited. This study examines the transformation of Madrasah Diniyyah Pasia in Nagari Pasia, Ampek Angkek Candung District, Agam Regency, West Sumatra, into Pondok Pesantren Modern Diniyyah Pasia. The study aims to analyze the background, dynamics, and driving factors behind this institutional transformation. The research employs the historical method consisting of four stages: heuristics, source criticism, interpretation, and historiography. Data were collected through institutional archives, historical documents, related literature, and interviews with institutional leaders, alumni, and local community members. The results reveal that the institutional transformation was influenced by several key factors, including government policies through the Joint Decree of Ministers in 1975 and 1977 regarding Islamic education, the decline in the number of students during a certain period, community demands for improving educational quality, and the strategic role of alumni in encouraging institutional reform and educational system development. The transformation process was not without challenges, particularly financial constraints and the need to adapt to a more modern educational system. Nevertheless, in 1992 the institution was officially transformed into Pondok Pesantren Modern Diniyyah Pasia and has continued to develop to the present day. This study contributes to the historiography of Islamic education by highlighting the dynamics of institutional transformation at the local level in responding to social change and educational policy developments.]]>
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