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The transformation of village areas into community-based tourist destinations represents a strategic pathway for achieving sustainable tourism in Indonesia. This study explores the potentials, challenges, and strategic directions for developing Dukuh Mejing, Bantul Regency, as an emerging community-based agro-edutourism village. A qualitative descriptive approach with an intrinsic case study design was employed, involving in-depth interviews, participatory observation, and document analysis. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, supported by NVivo 12 Plus for coding and thematic mapping.  The results reveal that Dukuh Mejing possesses strong physical and socio-cultural assets, including modern goat farming, rice-based agriculture, and preserved local traditions such as Nyadran and Kenduri. However, key constraints remain in infrastructure, community awareness, and institutional coordination. The SWOT analysis indicates that strategic development should focus on optimizing agritourism and cultural-based experiences, enhancing community capacity, improving accessibility, and adopting digital innovation to expand market reach.  The findings emphasize that collaborative governance, community empowerment, and innovation-driven competitiveness are fundamental to building a sustainable and resilient village tourism model. This study proposes an integrated framework that aligns community-based tourism principles with destination competitiveness and sustainable planning approaches. Practically, the model provides policy insights for local governments to strengthen participatory planning, institutional synergy, and adaptive monitoring systems. Theoretically, it contributes to the understanding of how village tourism destinations can achieve sustainability through community-led innovation and inclusive governance.