Pesantren, or Islamic boarding schools, have long been a central part of Indonesia’s educational landscape, combining religious instruction with life skills training. This chapter examines how Pesantren incorporates life-based learning (LBL) into its educational models, transforming real-life experiences into valuable learning opportunities. The study focuses on Madrasah Mu’allimin Muhammadiyah Yogyakarta, a leading example of how Pesantren adapts traditional values to modern educational needs. By incorporating a holistic curriculum that blends academic, spiritual, and practical learning, Pesantren creates a learning environment where students engage in community service, leadership training, and personal development alongside their religious education. Activities such as Tapak Suci, community service, and leadership programs like “Singapodium” and “Mubaligh Hijrah” not only prepare students academically but also equip them with essential life skills. Through these programs, Pesantren foster discipline, responsibility, and a strong sense of community. The chapter also highlights the use of narrative inquiry methods to reflect on how students’ daily routines and experiences, such as communal meals and participation in student organisations, contribute to their learning process. This combination of academic rigour, religious study, and life skills ensures that Pesantren graduates are well-prepared to navigate the complexities of both the modern world and their spiritual lives. The success of Pesantren in implementing LBL demonstrates the potential of integrating traditional and modern educational practices to produce well-rounded individuals who can make meaningful contributions to society.