Moral character development has become increasingly important as students face rapid technological change, social diversity, and complex ethical challenges. This study examines how contemporary Islamic education contributes to the development of students’ moral character and identifies the educational mechanisms that facilitate the internalization of Islamic values in everyday life. Employing a qualitative multiple-case study, data were collected through semi-structured interviews, classroom and institutional observations, and document analysis involving Islamic education teachers, school leaders, guidance personnel, and students across three Islamic educational institutions. The data were analyzed thematically through coding, categorization, cross-case comparison, and interpretation, with attention to moral knowledge, moral reasoning, spiritual and emotional internalization, habituation, and ethical behavior. The findings demonstrate that students’ moral character develops most effectively when Islamic values are integrated across the curriculum and reinforced through teacher modeling, institutional culture, reflective learning, spiritual practices, habituation, and authentic social engagement. The findings also show that contemporary Islamic education needs to address digital environments by connecting Islamic moral principles with responsible digital communication, information use, and social interaction. The study concludes that contemporary Islamic education should move beyond religious knowledge transmission toward an integrative model that connects Islamic values, moral reasoning, internalization, habituation, and social-digital practice to foster sustainable moral character
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