One of the fundamental lessons in Islamic education in elementary schools is Islamic morality and character (akhlak) because it will help the students to be good believers who have piety and good morality; it is beneficial for the students, their religion, society, and their nation. However, the implementation of Islamic moral education does not always obtain the desired goal because of several obstacles. This study aims to investigate (1) the method of moral and character inculcation at SD Muhammadiyah Siraman, (2) the obstacles faced by the teachers in implementing the methods, and (3) the effort of the teachers to overcome the obstacles. This study is a field research with qualitative method. The sources of data including; (1) the teachers who teach Islamic religious education at SD Muhammadiyah Siraman, (2) the students of SD Muhammadiyah Siraman, and (3) The Headmaster of SD Muhammadiyah Siraman. The methods used in data collection are observation, documentation, interviews. This study found out that the methods employed by the teachers in inculcating Islamic morality and character in SD Muhammadiyah Siraman including; being role models for the students, giving motivations and advice, telling inspiring stories, and giving awards as well as punishments. In implementing these methods, the teachers face internal challenges, meaning that the challenges come from the students as well as external challenges. To overcome the challenges, the teachers apply the method of habituation, collaborate with homeroom teachers, and keep motivating their students.