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This research was conducted for developing a valid, practice and effective learning material which able to optimize the implementation of iqro method in basic functional literacy learning. This research used Research and Development (R&D) approach. Thiagrajan’s 4D model was used as its research design. The data were collected through observation, interview, questionnaire and documentation study. The data were analysed by descriptive analyses. The research result showed that the learning material which used PADI as its theme is very feasible to be used in functional literacy learning process. In validity criteria, it get score 3.7 in maximum score 4. In Practical criteria it got score 3.6. In effectiveness criteria it got score 3.6. Keywords—Iqro’ Method, Functional Literacy Learning Material, Functional Literacy Program.

The Optimization of Iqro’ Method Implementation in Basic Functional Literacy Learning by Developing Learning Material based Padi (Rice Plant) as One of Local Potency in Jember