Literature learning is essential in building students' character and increasing their sensitivity. Local wisdom's importance must be instilled within students in learning literature because its existing values are starting to fade and are not in demand by the current generation. This study aimed to investigate the local wisdom in the ancient Indonesian manuscript "Menak Lare 1" and its application as literature teaching and learning materials in schools. The present research employed a descriptive qualitative design. The object of the study was an ancient Indonesian manuscript entitled "Menak Lare 1". It contained stories about Amir Hamzah's struggle to spread Islam. The research data sources were informants and archives or documents. Data analysis in this study incorporated a flow model. The findings revealed that the elements of local wisdom were contained in the "Menak Lare 1" manuscript so that it could be implemented as literature teaching and learning material in school. The results of this research could help preserve local wisdom through the learning process by engaging varied lesson materials.