Purpose -This paper aims to study the Pesantren's role in alleviating the poverty in rural region, and the discussion is connected to the theory of local economic development and Maq a Á sid al-Sharī'ah.Design/methodology/approach -This paper engages a case study and an interview to get insight into the subject matters.Findings -This study finds that the roles of an entrepreneur and a stimulator are evident from the sampled Pesantren in empowering the local economy and the underprivileged community. Further, inasmuch as the fundamental concept of local economic development is in line with Maq a Á sid al-Sharī'ah, the evidence from the sampled Pesantren is also representative of its role in actualising it. This study is relevant for academics, local government in Indonesia and other related stakeholders.Practical implications -This paper credits both theoretical and practical implications for academics and the government. Firstly, by discussing the concept of prosperity from the Western and Islamic perspective, this paper creates a notion that these theories are harmonisable. Secondly, by sampling a Pesantren to draw how these two concepts are applied to advance a rural economy, this paper comes out with the hands-on advice for Indonesian government to legally engage with the existing Pesantrens to perform its rural development programmes.Social implications -While a Pesantren's role in empowering a disadvantaged community is comprehensively investigated, an accurate evidence is documented which can best challenge its radicalism and terrorism issues.Originality/value -This is the first study to harmonise the theory of local economic development and Maq a Á sid al-Sharī'ah and presents the practical evidence from a Pesantren.