Purpose The purpose of this study is to investigate the integration of entrepreneurial spirit and multicultural values in Islamic education, particularly within the context of pesantren, and to understand its implications for educational practices and outcomes. Design/methodology/approach This study adopts a qualitative research approach, using literature review and analysis of empirical data to explore the intersection of entrepreneurial spirit and multicultural values in Islamic education. It incorporates findings from multiple sources, including scholarly articles, books and empirical studies, to provide a comprehensive understanding of the topic. Findings The findings reveal that the integration of entrepreneurial spirit and multicultural values in Islamic education empowers students economically, fosters innovation in teaching methods and promotes character development and business ethics. Moreover, it emphasizes appreciation for diversity, cross-cultural collaboration and social responsibility within the educational context. This integration creates an inclusive learning environment conducive to the development of entrepreneurial skills, innovation and ethical leadership. Research limitations/implications Generalizability: the findings of this study may be limited in their generalizability due to the focus on specific multicultural Islamic educational institutions, potentially limiting the applicability of the results to broader educational contexts. Sample size and diversity: the study’s sample size and diversity may impact the representativeness of the findings. Future research could aim for larger and more diverse samples to enhance the robustness of the results. Methodological constraints: the reliance on certain research methods, such as surveys and interviews, may introduce biases or limitations in data collection. Researchers should consider using a variety of methodologies to triangulate findings and ensure comprehensive understanding. Time constraints: the study’s timeframe may have constrained the depth of analysis and limited the exploration of the long-term effects of entrepreneurship education on student development. Future research could adopt longitudinal approaches to address this limitation. Cultural context: the findings are contextualized within the cultural and educational landscape of multicultural Islamic institutions, which may limit their transferability to other cultural or religious contexts. Researchers should consider examining similar phenomena in diverse cultural settings. Resource constraints: resource limitations may have impacted the scope and depth of the research. Future studies could seek additional resources to conduct more extensive investigations and analyses. Bias and subjectivity: despite efforts to minimize bias, researchers’ subjectivity and potential biases in data interpretation and analysis cannot be entirely eliminated. Researchers should acknowledge and address their own biases transparently. Ethical considerations: the study may have encountered ethical challenges related to participant consent, confidentiality and cultural sensitivity. Future research should prioritize ethical guidelines and considerations to ensure the protection and well-being of participants. Addressing these limitations in future research endeavors can contribute to a more comprehensive understanding of the role and impact of entrepreneurship education in multicultural Islamic educational settings. Practical implications Practically, the study informs educational institutions, especially pesantren, about the benefits of integrating entrepreneurial spirit and multicultural values into their curriculum and pedagogical approaches. It offers insights into effective strategies for fostering entrepreneurship, innovation and intercultural competence among students. Social implications The integration of entrepreneurial spirit and multicultural values in Islamic education has broader societal implications. It cultivates a generation of socially responsible and inclusive leaders capable of addressing global challenges with creativity and empathy. By promoting cultural understanding and collaboration, it contributes to building more harmonious and resilient communities. Originality/value This study is original in its comprehensive exploration of the intersection between entrepreneurial spirit and multicultural values in Islamic education, particularly within the context of pesantren. It offers fresh insights into how these dimensions can be integrated synergistically to enhance educational practices and outcomes.