This study aimed to study the role and strategy of the ecotourism sector based on local wisdom in Padusan Village, Pacet District, Mojokerto. The best strategy for developing the ecotourism sector based on local wisdom in Padusan Village in accelerating the achievement of sustainable development (SDGs) was the further milestone of this study. The participation of local communities was an important element in the activities and development of ecotourism in Padusan Village. However, the study regarding the determinants of participation was extremely rare. To strengthen this determinant, the researcher added the role of the government and business behavior which are used as two antecedent variables for the local community of Padusan Village in hot spring ecotourism sourced from the Welirang mountain range. Researchers applied a Partial Least Square - Structural Equation Model (PLS-SEM) that was analyzed using primary data from the 178 ecotourism business communities in Padusan Village. The results showed the role of the government significantly influences local participation in the development of ecotourism. Ecotourism and social capital business behavior showed a significant influence on the participation of local communities. In addition, the participation of local communities in Padusan Village had an impact on significantly increasing the benefits associated with tourist activities. The results of the study also show community participation through the value of local wisdom in the form of mutual cooperation culture to develop ecotourism. One of them is the involvement of local residents as workers and managers of hot spring tourism in Padusan Village.