This research aims to explore the ways of development of Islamic education curricullum for character building as well as the obstacles, and the sollutions in the implementation of character building in SMP Negeri 2 Galur Kulon Progo. The approach of this research is qualitative descriptive method. The subjects of this research are Headmaster, Vice Principal of curriculum, School Counselor, and 2 teachers of Islamic Education. The object is the development of Islamic Education curriculum to build the students’ character. Data is collected through interviews, documentation, and observation. Data analizes using Miles and Huberman data analysis which includes 4 stages of data analysis, namely Data Collection, Data Reduction, Data Display, and Data Verification. Triangulation data is also conducted in this research. The result of this research reveals that there are three ways to develop the Islamic education curriculum for character building. Fuhermore, the obstacles and the sollutions in the implementation of character building in SMP Negeri 2 Galur Kulon Progo including; some students cannot attend school because of tired and unhealthy. The sollution of first problem is giving advice and punishment for offender. The second problem is that most of students parents do not follow Islamic teaching perfectly. The sollution of second problem is still not resolved. The third problem is that the implementation of character education has limited time. To overcome the third problem is advicing and encoraging students in order to have good character. The fourth problem is extracurricular educators are still limited. The last problem has still not been resolved yet.