As a subsystem in national education system, Islamic education system plays a strategic role in the nationâ€TMs intellectual life as well as its character building. Islamic boarding school education system, as one of the varieties of Isl amic educational institutions, is the pioneer and prototype in the holistic human development, that is, noble character. In the context of nation and state, Islamic boarding schools have been proven to play an active role in firmly upholding and defending the Unitary State of the Republic of Indonesia (NKRI), and they have been at the frontline to fight against the Dutch colonialists long time before Indonesia gained its independence up to nowadays. However, during the previous decades, a number of Islamic boarding schools have gone through nationalist-related distortions. Al-Muâ€TMmin Ngruki Islamic Boarding School is a manifestation of radical stigma that breeds anti-NKRI terrorists. This field research employed a qualitative approach called phenomenology, aiming to describe the dynamics of Islamic education at Al-Mumin Ngruki Islamic Boarding School. The data were collected using in- depth interviews, participant observation, and documentation studies. The results suggested that the existence of Ngruki Islamic Boarding School as a boarding school is closely related to the internalization of Islamic educational values going through a series of dynamics; during the early period, which was very firm and rigid in interpreting Islam, the middle period, which slowly turned into egalitarian, and the modern period, which promotes a moderate mindset in carrying out the institutional functions to an egalitarian and proportional global interaction.