Modern villages are innovative sources of economic growth, harnessing the untapped potential of local resources to drive sustainable development. This study explores the dynamic interplay between local resources and the establishment of modern businesses in Pandansari Lor Village. By adopting a qualitative approach and using interviews and field observations, the research uncovers the distinct local resources that play a pivotal role in the community's economic transformation. The findings demonstrate the significance of natural resources, cultural heritage, and traditional knowledge as drivers of entrepreneurial initiatives, paving the way for the modernization of village businesses. The study not only contributes to the academic literature on rural development, but also provides valuable insights for policymakers and local communities seeking to leverage their inherent resources for sustainable economic growth and community well-being.The development of local resource management today shows that the community already has a tradition to do business, in the form of opening cafes around Coban Jahe waterfall and the cassava processing industry that already has a market outside the village. Industrialization must be based on the local potential of the village, namely processed cassava, and coconut with various variants of product diversification. Village industrialization is carried out in two ways, first the development of various appropriate technologies in the form of production machines to increase the processing capacity of cassava, coconut, and herbal plants, and second, digital technology and automationfor water resources management, namely Hippam management and fish farming. This industrialization process is very important for increasing village production capacity, village product quality and tourism village branding in the future. The development of village industry will be able to accelerate the realization of a modern tourism village.