This study aims to analyze the implications of the dichotomous separation between the dimensions of *aqidah* (creed) and *muamalah* (social transactions) in the Islamic Religious Education (PAI) curriculum regarding the tendency toward religious exclusivism among Generation Z students at MTs Baitul Azhar. Employing a qualitative approach utilizing critical discourse analysis and content analysis, data were collected through a study of curriculum documents, in-depth interviews with PAI teachers, and Focus Group Discussions (FGDs) with students. The findings indicate that PAI instruction remains fragmented; *aqidah* is taught in a dogmatic-normative manner, whereas *muamalah* is limited to formal *fiqh* (jurisprudence) rules. This separation severs the conceptual link between faith and social piety, creating a void filled by instant, absolutist religious narratives on social media, thereby fostering in-group favoritism and social rigidity. The study concludes that it is crucial to deconstruct and reconstruct the PAI curriculum based on an interconnective-*wasathiyah* (moderate) paradigm to equip Generation Z with both spiritual steadfastness and inclusive social flexibility in the digital era.
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