<![CDATA[This study examines culturally grounded English interpretation as a strategic capability for sustainable tourism entrepreneurship in Lake Toba, Indonesia. Rather than viewing English merely as a translation or service-communication tool, the study conceptualises interpretation as a place-based entrepreneurial capability through which Batak cultural knowledge can be communicated to international tourists, transformed into innovative tourism experiences, and connected to locally retained value. An interpretive qualitative case-study design was employed. Participants were purposively selected from cultural custodians, traditional leaders, tourism entrepreneurs, tour guides, destination managers, community representatives, and tourists with direct experience of cultural tourism in the Lake Toba region. Data were collected through semi-structured interviews, focus group discussions, non-participant observation, and analysis of English-language tourism materials and digital content. Reflexive thematic analysis combined inductive and deductive coding. The findings show that literal translation may communicate visible elements of Batak heritage while failing to convey their historical, social, symbolic, spiritual, and relational meanings. Effective interpretation therefore requires community-based cultural co-creation to ensure authenticity, protect culturally sensitive knowledge, maintain local differentiation, and preserve community control over representation. The study identifies culturally grounded English capability as integrating cultural knowledge, communicative English, storytelling, intercultural sensitivity, digital competence, ethical judgement, and product-development awareness. These capabilities support opportunity recognition and innovation in guided experiences, workshops, homestays, geo-cultural trails, audio guides, and digital heritage content. The study proposes a process-oriented model linking community co-creation, interpretation, opportunity recognition, product innovation, local value creation, and sustainable tourism entrepreneurship.]]>
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