This study aims to analyze the process of students’ moral development at Nurul Chotib Islamic Boarding School, identify the internal and external challenges encountered in the moral development process, and examine the supporting and inhibiting factors influencing moral development in the era of globalization. This research employed a qualitative approach with a field research design. Data were collected through observation, semi-structured interviews, and documentation involving the boarding school manager, administrators, female teachers (ustadzah), and students selected using purposive sampling. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, while data credibility was ensured through source and technique triangulation. The findings indicate that students’ moral development is implemented through religious habituation, exemplary behavior of caregivers and teachers, the enforcement of boarding school regulations, and continuous supervision of students’ daily behavior. The study also reveals that differences in students’ backgrounds, the influence of social media, digital technology, and peer interactions constitute significant challenges in the moral development process. Supporting factors include a religious environment, structured programs, and collaboration among boarding school personnel, whereas the main inhibiting factors are social media exposure, limited self-discipline, and peer influence. This study contributes to the development of Islamic education by providing a comprehensive understanding of students’ moral development in the context of globalization and offers practical recommendations for strengthening moral education in Islamic boarding schools.