ABSTRACT The writer explores the myth of Dewaruci as a character educational source of IPS learning by the assumption since,

initially, there are many events in this world as fictional matter, yet, it unites, then, with the real world. The fairytales containing real values in daily live transform as insipiration for someone in conducting certain behavior. Specifically, the concept of charater educational that is in line with the teaching of IPS is an education involving cultural transfer, wisdom, as well as moral value that in future it will inspire the students to do noble-minded in developing their good deed, being sensitive of social issue, and having mental attitude positively to refine a gap as well as skillfull in dealing with each matter bothering their self or, even, the society within. Therefore, this writing tries to expose how is the meaning of character values existing in the myth of Dewaruci, how to integrate and apply the values of the myth of Dewaruci as character educational source of IPS learning. Hence, this research is qualitative since the data connecting the text review of Serat Dewaruci by Surakarta's man of letters is obtained through library research. Thus, the data of library research finding is analyzed and intepreted by the reseacher using Levi-Strauss's structural perspective and hermeunitics in order to reveal the massage of character values in the Myth of Dewaruci. To integrate, further, the values of Myth as character educational source in IPS learning and apply it into the material of IPS, the researcher uses content analysis.. The research finding of Myth of Dewaruci as character educational source in IPS teaching reveals that 1) the meaning of character values existing in the Myth of Dewaruci finds that the mind structure of Javanese in questing live perfectness comprises of character value of honest (temen), reliable, amenable (nrima) and sincere (ikhlas), humble (prasaja), low self esteem (andhap asor), sensible of limitation (tepa selira), work hard, willing to work (rame ing gawe). The third is logic, critical, creative, and inovative, which is the thinking habit by considering the feeling (rasa) of their conscienc. Fourth, it is sensitive of social and environment surrounding that will establish by the maturation of thinking process if they can do mutual aid (gotong-royong), help someone who mourns (layat), conduct public interest in togetherness(gugur gunung), give money as social liability during certain ceremony (njurung). Fifth, it is nasionalist, having high loyalty and justice moral, respect as achievement toward their teacher's order. Sixth, it is honor on diversity by the indicator is harmony principle (rembug desa). 2) the integration of values of the Myth of Dewaruci as character educational source in IPS learning is by cultivating cultural ethic of Java as early as possible in family synergized with character educational in IPS teaching at school. 3) the application of character values of the Myth of Dewaruci recommended into the material of IPS uses the strategy of character educational that can facilitate the realization of those values. Keywords: The Myth of Dewaruci, character educational, IPS learning.