Globalisation and digital transformation present both opportunities and challenges for Islamic education, particularly in preserving religious identity, developing 21st-century skills, and fostering social awareness amongst learners. This study aims to reconstruct a paradigm of Islamic education based on the values of rahmatan lil ‘alamin as the foundation for holistic character building, encompassing spiritual, intellectual and social dimensions. The study employs a qualitative approach using a literature review method. Data were obtained from Scopus-indexed scientific articles, academic books and relevant educational policy documents, particularly those published within the last five years. The data were analysed through content analysis and theoretical-philosophical synthesis by examining the ontological, epistemological, and axiological dimensions of Islamic education. The results indicate that the values of compassion, justice, balance, tolerance, moderation, and the common good can serve as the foundation for transforming the objectives, curriculum, pedagogy, school culture, and evaluation of Islamic education. Spiritual character is manifested through faith, piety, integrity and self-control; intellectual character through critical, creative and reflective thinking, as well as digital literacy; whilst social character is manifested through empathy, tolerance, collaboration, justice and social responsibility. This study offers an innovative, integrative framework that links theological-philosophical foundations, a values-based curriculum, transformative pedagogy, the exemplary role of educators, an inclusive educational culture, and authentic assessment. This framework emphasises that the three dimensions of character must be developed as a single, mutually reinforcing whole. This model also provides a conceptual basis for the development of sustainable Islamic education policy. The study concludes that the transformation of Islamic education based on rahmatan lil ‘alamin is relevant for producing learners who are religious, critical, adaptable, humanistic and responsible within a global society. Consequently, educational institutions need to strengthen teachers’ competencies, contextual learning, partnerships with families, and the ethical and public-interest-oriented use of technology.
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