This study aims to determine the role of al-qur'an based education to improve students' character and describe the inhibiting and supporting factors that occur in the presence of al-qur'an-based education at SD Muhammadiyah 16 Karangasem. This study uses qualitative methods. Data collection is done by observation, interviews and documentation. The validity of the data uses triangulation techniques. Data analysis uses interactive techniques. The results showed that the process of character building in Karangasem Elementary School 16 Muhammadiyah started from various stages, namely: 1) the planning phase, namely by the existence of policies or regulations of each class in order to achieve a goal to improve the character of students. 2) the organizing stage, namely by conditioning the learning processes in a class based on the rules made by each class teacher. 3) the third stage is the implementation phase, namely by monitoring each activity in order to achieve Islamic-based character education. 4) This evaluation phase aims to determine the extent to which character education is applied in each class whether it is embedded or not. Inhibiting factors and supporting the emergence of the role of al-qur'an-based education enhances students' character, namely the first from the family, the second from students and the last from the teacher
