Background/purpose: This research aims to analyze the impact of the Problem-Based Learning (PBL) model in differentiated learning to improve students' character values and learning outcomes in Pancasila and Civic Education (PPKn) at the elementary school level. Materials/methods: The study employs a descriptive qualitative method with a case study approach at Pancor 3 State Elementary School, East Lombok, Indonesia. The sample was selected through purposive sampling, involving six teachers and all fifth-grade students. Data collection techniques include interviews, observations, and documentation. Interviews were conducted with teachers to gain their perspectives on the implementation of PBL and its impact, while classroom observations were carried out to monitor student interaction and engagement. Documentation techniques collected additional data such as teachers' daily notes, photos of teaching and learning activities, and students' work. Data were analyzed through reduction, display, and conclusion drawing. Results: The results show that PBL effectively enhances character values such as self-confidence, responsibility, tolerance, cooperation, and mutual assistance. Moreover, PBL improves students' academic learning outcomes by providing relevant and meaningful learning experiences and enhancing critical thinking, analysis, and problem-solving skills. Students felt more motivated and actively engaged in learning, creating a dynamic and productive classroom atmosphere. Conclusion: This research provides a holistic view of how PBL can support differentiated learning and contribute to character-building and better learning outcomes. These findings are expected to offer practical recommendations for educators and schools to enhance the implementation of PBL within the context of the Independent Curriculum.