Islamic educational institutions face multidimensional managerial challenges driven by globalization and digital transformation. While previous studies have examined aspects such as leadership, curriculum, and quality assurance in isolation, a critical research gap remains regarding how these dimensions interact systemically and how modern management can be authentically integrated with Islamic ethical frameworks. This study aims to analyze these interconnected challenges and propose a holistic governance model. Employing a systematic literature review adhering to PRISMA guidelines, this study synthesized peer-reviewed literature published between 2020 and 2025. Data were analyzed using rigorous thematic content analysis, utilizing structured coding to identify systemic relationships and emerging patterns rather than isolated issues. The findings reveal that managerial challenges—encompassing leadership, human resources, curriculum, technology, finance, and quality assurance—are mutually reinforcing; notably, leadership effectiveness emerges as the foundational enabler that catalyzes improvements across all other institutional dimensions. The study’s novelty lies in conceptualizing the integration of contemporary management with Islamic principles—specifically amanah (trustworthiness), 'adl (justice), and shūrā (consultation)—not merely as normative ethical values, but as strategic governance mechanisms that drive participatory decision-making, equitable resource allocation, and transparent accountability. Ultimately, this study advances educational management discourse by providing an evidence-based, values-driven framework for sustainable institutional governance, offering policymakers and leaders a strategic roadmap to navigate modernization while preserving the distinctive ethical identity of Islamic education.
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