Batik MSMEs in Yogyakarta play an important role in the economy and cultural preservation, but face challenges in sustainability, especially in waste management and resource efficiency. Dea Modis Batik and Jumputan MSMEs have implemented green economy principles through the utilization of fabric waste and environmentally friendly marketing. However, in the coloring process, these MSMEs still use synthetic dyes but try to manage their waste through a simple filtering system. This study aims to analyze the application of green economy in Dea Modis Batik and Jumputan MSMEs and evaluate alignment with Islamic economic principles to support sustainable development in the batik MSME sector. The research design used is descriptive qualitative research with a case study approach. Data were obtained from primary sources through interviews with owners, managers, employees, and the surrounding community, as well as secondary sources in the form of literature and related documents. Data collection techniques include direct observation, in-depth interviews, and documentation.Data analysis was carried out through the stages of data reduction, data presentation, and drawing conclusions using source triangulation techniques. The result of this study indicate that Dea Modis has implemented green economy principles through a low-carbon approach, resource efficiency, and social inclusion. This is reflected in the use of solar energy, waste management, and community empowerment. From an Islamic economics perspective, this MSME emphasizes values such as tauhid (oneness of God), amanah (trust), justice, and innovation ijtihad. The theoretical implications of these findings strengthen the concept that integrating the green economy with Islamic principles can create a business model for MSMEs that is spiritual, ethical, and sustainable. This study recommends the development of natural dye usage and environmentally friendly technologies as innovative solutions to support production efficiency and long-term sustainability. Keywords: Green Economy, Batik MSMEs, Islamic Economy, Sustainability