Islamic education policy in madrasas is currently undergoing a significant transformation aimed at strengthening moderate character. This study aims to analyze the strategic role of Islamic education policies in madrasas in shaping the Rahmatan lil ‘Alamin generation (a blessing for the universe). The approach used is a qualitative method through document studies of various Ministry of Religious Affairs regulations and related scientific literature. The results of the study show that the strategic role of the policy is manifested into four main pillars: the integration of the values of tawassuth (moderate), tasamuh (tolerant), tawazun (balanced), and ‘itidal (just) in the Islamic education curriculum; the formation of an inclusive madrasah culture; improving teachers’ multicultural pedagogical competence; and the implementation of the Rahmatan lil ‘Alamin Student Profile Strengthening Project (P2RA). This policy is proven effective as a filter for extreme ideologies in the digital era, an instrument for social engineering, and a driver for contextual learning transformation. However, implementation in the field still faces challenges in the form of disparities in teacher understanding and the strong influence of external social media. Overall, this policy succeeded in shifting the orientation of madrasas from merely transferring knowledge (ta’lim) to holistic character formation (ta’dib) in order to produce superior, tolerant, and adaptive Muslim generations in a pluralistic society.