There have been social, political and religious changes in Indonesia since the fall of the New Order regime in 1998. Globalization has furthered acceleration of the change. These forces have given tremenduous impacts on Indonesian educational system, and Islamic educational system (pesantren) in particular. This article examines how pesantrens respond globalization and explores what pesantrens have developed during the era. Based on an ethnographic study in pesantrens in East Java, this study explores the conception, policy and practices of Islamic education in the pesantren in this globalization era. It argues that globalization increases the complexity and the necessity of learning and teaching development, particularly in preparing stude...