The lack of motivation has made it challenging for students to improve their vocabulary learning outcomes. Token economy is one technique designed to enhance motivation and engagement. This study investigated the influence of the token economy technique on improving vocabulary outcomes among eleventh- grade students at MAS Ulumul Qur’an, Aceh. This study used mixed-method approach. Using a quasi-experimental design with a one-group pre-test and post- test approach, 27 students were selected through purposive sampling. Vocabulary tests were conducted before and after the intervention to evaluate its effectiveness. Observations were also carried out to identify behavioral changes and challenges during the implementation. The results indicated a significant improvement in vocabulary outcomes, with mean scores rising from 38.70 in the pre-test to 50.56 in the post-test. A paired sample t-test confirmed the effectiveness of the token economy technique, showing a t-value of -6.150 and a significance level of 0.000 (p < 0.05). Observations revealed that students showed increased independence, initiative, and confidence in vocabulary-related activities. For example, many students began using new vocabulary in discussions and presentations more actively, demonstrating greater engagement in learning. However, challenges included maintaining student interest when rewards became repetitive and ensuring fair token distribution among students with varying skill levels.The token economy technique proved effective in fostering student motivation and active engagement in vocabulary learning. By integrating token-based rewards, students participated more actively in learning activities, leading to improved vocabulary acquisition. This study underscores the potential of incorporating token economies in English language teaching to create an interactive and dynamic learning environment, while emphasizing the importance of adaptability and ongoing evaluation to address implementation challenges