Local wisdom plays an essential role in fostering the values of religious moderation within culturally diverse educational institutions. This study investigates the institutionalization and pedagogical impact of local wisdom preservation in reinforcing religious moderation values among students at SMK Negeri 1 Bantul, Yogyakarta. Utilizing a descriptive qualitative approach, data were gathered through in-depth interviews, prolonged participatory observation, and documentary analysis with school administrators, cultural educators, Islamic and non-Islamic religious teachers, and students. Triangulation of sources and member-checking ensured data trustworthiness, analyzed via iterative data condensation, display, and inductive conclusion drawing. The findings reveal that local cultural wisdom is structurally integrated across curricular and cocurricular domains through six primary channels: the 5S culture (Senyum, Salam, Sapa, Sopan, Santun), scheduled broadcasts of national and regional songs, simultaneous morning Quranic recitations and interfaith devotional reflections, periodic Dhikr-Do’a-Sholawat (DDS) gatherings, the Pancasila Student Profile Strengthening Project (P5) centered on batik artisanship, and traditional performing arts. These initiatives cultivate core religious moderation values, including civic nationalism (muwatanah), pluralistic tolerance (tasamuh), cultural inclusiveness (i'tiraf al-‘urf), ideological equilibrium (tawassut and i'tidal), active non-violence (al-l ‘unf), and participatory consensus (asy-syura). Consequently, local wisdom serves as an empirical foundation transforming school culture into an inclusive, non-violent, and accommodative educational environment.
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