Abstract
<jats:p>This chapter explores the strategic role of Islamic boarding schools (pesantren) in promoting eco-innovation within the halal industry. Focusing on the “One Pesantren One Product” (OPOP) initiative, the chapter highlights how pesantren-based business units integrate environmentally friendly practices to enhance the sustainability of halal production. Drawing on qualitative case studies from East Java Indonesia, the chapter presents a structured analysis across three dimensions: the implementation of eco-innovation by pesantren business units, their contribution to sustainable development, and the challenges and opportunities in embedding sustainability within pesantren-based enterprises. Findings show that pesantren possess inherent local wisdom and organizational capacity to act as agents of green transformation, supporting both the halal value chain and broader sustainable development goals. The chapter offers practical insights and policy recommendations to strengthen eco-friendly practices in Islamic educational institutions and align them with Indonesia's green economy agenda.</jats:p>