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The purpose of this study is to analyze economic and entrepreneurship empowerment model in Hidayatullah Islamic boarding institution in East Java. By using qualitative approach with study case method, data analysis technique conducted is descriptive method, this is a pioneering study regarding entrepreneurship based economic empowerment model in Hidayatullah as a leading Islamic boarding institution and religious organization in East Java. This research found that Hidayatullah as Islamic boarding institution plays a role as not only an Islamic educational institution but also a society economic empowerment. It also increases economic independence by fostering entrepreneurial spirit among administrators and students. The existing model of entrepreneurship based economic empowerment in Hidayatullah is replicable in similar institutions.