Islam is the way of life. And the Islamic education system is called a holistic approach to learning as it was in the early days of Islamic civilization. Islamic education, therefore, is considered and placed in a very noble position as it emphasizes the importance of the acquisition and dissemination of knowledge over other human activities. The background of this article sets out to assess the Challenges of Islamic Education in the 21st Century by bringing up some brief literature and analysis. In this article there are several topics related to the nature of Islamic education in Islamic education, the reality of Islamic education, Reform of Islamic education in the 21st century in the sectoral sector, curriculum, strengthening human resources, the Islamization of science by embodying Islamic values in science as part of education, the development and strengthening of Soft skills and management as well as entrepreneurial spirit is an inevitable need. But all of that will be able to work well and even become a force for the revival of the Islamic ummah if moral learning and gratitude for everything become the foundation for all reforms carried out in Islamic Education in the 21st Century and beyond.