: This paper discusses three main issues: First, the existence and Problems of Islamic Education. Secondly, Improving the Quality of Islamic Education competency-based. Third, the role of Islamic Education in Competency-Based Curriculum Development. Study in this paper found that the main problems of Islamic education in educational institutions today is only seen through the cognitive aspect, not seen how learners to practice in the real world so that the extent of religious study and memorize the notes. This resulted in religious studies lessons not theoretical appreciation of the value of religion itself. So Improving the quality of Islamic education is obtained through two strategies: (1) improving the quality of education that is academically oriented. (2) improving the quality-oriented education is an essential life skill that is broad-based education, real and meaningful