Contemporary elementary education continues to face complex challenges in internalizing multicultural values, as reflected in the persistence of social segregation and value dissonance that foster self-grouping behaviors among students. This study aims to describe the practical challenges encountered by teachers and to analyze the pedagogical solutions implemented in managing multicultural classroom dynamics. Employing a qualitative approach with a case study design, the study involved 11 participants consisting of 10 teachers and one school principal. Data were collected through non-participant observation and open-ended questionnaires, and subsequently analyzed using the interactive model of Miles and Huberman, which includes data reduction, data display, and conclusion drawing. The findings highlight two primary challenges: value dissonance between school and family environments and naturally occurring social segregation that encourages student exclusivity. To address these challenges, teachers implemented holistic pedagogical strategies, including STEM-integrated Project-Based Learning (PjBL), the use of immersive technologies (AR/IFP), and social engineering approaches to promote student group integration. The study concludes that the integration of digital innovation, structured classroom management, and role modeling grounded in local cultural wisdom collectively contributes to the effective development of diversity-oriented character education. The implications of this study underscore the need to reconceptualize character education through the integration of culturally grounded visual role modeling and emphasize the dual role of teachers as moral exemplars and technologically adaptive learning facilitators in fostering inclusive and contextualized learning environments.
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