This study aims to analyze the development strategy of multicultural education in the process of transformation of Islamic educational institutions. The method used is a literature review through a qualitative approach. The results show that: (1) the foundation of the development of multicultural education consists of the foundation of religion, history, psychology, socio-culture and geography; (2) strategies to develop multicultural education in Islamic educational institutions can be implemented through two approaches, namely quantitative and qualitative. Quantitative development strategies with socialization and internalization programs through scientific activities, multicultural education innovation programs, and building a culture that accommodates multicultural spirit and values in Islamic institutions. Meanwhile, qualitative development strategies are Al-Quran and Sunnah Rosul intensive study programs, curriculum revision programs, training programs for educators, and local wisdom programs
