This research was conducted to reveal the existence and state of the relationship between the level of religious literacy and the understanding of class VII students of SMP Islam Al-Amin Malang on PAI subjects. The focus of research issues related to reviewing the relationship between the two variables is broken down into three parts, namely what is the level of students' religious literacy, what is the level of student understanding in PAI subjects, and what is the relationship between the level of religious literacy and students' understanding in PAI subjects regarding values (traits) and form (the direction the relationship works). Meanwhile, the research method used in this research is quantitative with non-experimental statistical data processing. The formulation of the problem of the relationship between the two variables in terms of form and value aspects was reviewed and analyzed based on the application of bivariate correlational data analysis techniques, correlation significance coefficients and simple linear regression, with the results of the study confirming that there was a positive influence between the level of religious literacy and understanding of class VII students of SMP Islam Al -Amen Malan. This is indicated by a correlation value of 0.898 which indicates a significant relationship between the two variables at a significance level of 0.00. In addition, the regression analysis showed that the level of religious literacy contributed 24.6% to students' understanding of PAI subjects. The regression results also show that the unstandardized coefficients are 78,944 and the regression coefficients are 0.145 and the regression significance value is 0.010

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