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The scientific and literary construction of pesantren or Islamic boarding schools, especially traditional ones, is highly popular to the community and involves the surrounding villagers. The communication established between village community and pesantren in continuing the scientific tradition ultimately creates new socio-cultural-economic activities. Pondok Pesantren Al-Muwahidin, located in Karanggedang, Salebu Village, Majenang District, Cilacap Regency, Central Java, is one of the pesantren that has a role in developing community literacy as mentioned. This research aims to observe and explain the role of the scientific tradition of Pesantren Karanggedang on literacy development of the local village community. A case study approach is used in this research. The stages of research activities include data collection, data reduction, data presentation, and data verification. The data was collected from observation, interviews, and documentation. This research reveals several findings about the role of the pesantren scientific tradition on literacy development of the local community, which are increasing public understanding of adab (Islamic etiquette), reducing criminal acts, creating information circulation culture, and modernizing knowledge, arts, and culture based on tradition and religion.