This action research initiative, conducted by UIN Sunan Ampel Surabaya (UINSA) in collaboration with Circular Economics from 2019 to 2023, examines the development of community-based tourism (CBT) in two Indonesian destinations: WAGOS (Wisata Alam Gosari) and the Sekapuk Tourism Area, including Setigi and Kebun Pak Inggih. The project emphasizes inclusive, culturally rooted, and environmentally responsible tourism aimed at empowering local communities. A multidisciplinary research team carried out fieldwork, stakeholder interviews, and participatory workshops between August and October 2025 to analyze the roles of social innovation, community participation, and local governance in sustaining CBT models. The findings indicate that CBT initiatives enhance local economic opportunities, strengthen social cohesion, and increase ecological awareness. Collaboration with Circular Economics contributed additional value by incorporating circular economy principles, zero-waste practices, and sustainable consumption into tourism planning. Joint workshops in Indonesia and Australia facilitated eco-innovation and cross-regional knowledge exchange