Halal tourism is increasingly developing as a strategic sector capable of improving community welfare, especially in areas with local wisdom-based tourism potential. Halal tourism has emerged as a significant sector in the global tourism industry, offering opportunities for economic growth and community welfare. Banyumas Regency, Central Java, has a variety of tourist destinations that can be developed with the concept of halal tourism to improve the welfare of the local community. This study aims to analyze the effect of local wisdom-based halal tourism development on community welfare in Banyumas. The research method used is qualitative with a case study approach. Data were obtained through in-depth interviews, observation, and document analysis. The results showed that the development of halal tourism in Banyumas contributes to increasing community income, creating jobs, and preserving local culture. However, the challenges faced include limited infrastructure, lack of understanding of the halal tourism concept, and the need for policy support from the local government. Therefore, collaboration between the government, community, and business actors is needed to optimize the potential of local wisdom-based halal tourism to improve the welfare of the Banyumas.