National curriculum policies in Indonesia continue to evolve in response to the challenges of globalization, which have a direct impact on the role of Islamic Religious Education (IRE). This study aims to analyze the impact of the curriculum policy transition from the 2013 Curriculum to the Merdeka Curriculum on the essence of IRE as values education, as well as to examine its relevance in the modern era. Using a literature review method with content analysis techniques, this study examines literature related to educational policy and PAI teaching practices. The results indicate that the curriculum transition shifts the orientation of PAI from mastery of cognitive content toward strengthening integrative competencies and the internalization of character. Although the Merdeka Curriculum offers pedagogical flexibility, implementation in the field remains hindered by administrative burdens and gaps in understanding the paradigm. The relevance of PAI in the era of digital disruption is determined by the ability to actualize the values of akhlakul karimah into digital literacy, religious moderation, and ecological awareness. The effectiveness of the curriculum lies not only in changes to its formal structure but also in the ability to preserve the spirit of PAI as a moral anchor for students. Consequently, there is a need to synchronize central regulations with the enhancement of educators’ pedagogical and spiritual capacities to achieve sustainable and meaningful character transformation for students
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