Eleventh-grade students at MA NWDI Ketangga struggle with reading comprehension due to limited vocabulary, difficulty identifying the main idea, and low motivation when encountering unfamiliar texts. This two-cycle Classroom Action Research (CAR) based on the Kemmis & McTaggart model tested the effectiveness of Contextual Teaching and Learning (CTL) using the local folktale “The Legend of Putri Mandalika” on the reading comprehension of 16 students, using pre-tests, post-tests, and observation checklists as instruments. The results showed a significant improvement: the average score rose from 53.06 to 80.31 (an increase of 27.25 points), while the percentage of students who met the minimum passing score (≥75) increased from 25% to 81.25%. A paired-sample t-test confirmed the significance of this increase (p = 0.000). The implementation of CTL increased from 66.67% in Cycle 1 to 100% in Cycle 3, accompanied by an increase in student participation from a score of 10 to 17. An N-Gain score of 0.58 indicates moderate effectiveness. These findings demonstrate that CTL, implemented through action research with consistent reflection and integration of local culture, is effective in improving students’ reading comprehension in the context of an EFL madrasah, particularly for beginner-level students.
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