This development research is based on the limited learning media at MI Al Ihsan Palembang so that students tend to be passive in following the teaching and learning process in the classroom. The purpose of this research is to design and produce products in the form of e-book learning media based on contextual teaching and learning (CTL) in thematic learning theme 2 subthema 2 class III at MI Al Ihsan Palembang which has a level of validity and practicality so that it is suitable for students to use in the teaching and learning process in the classroom. The research method used is the Research and Development (R&D) method with the ADDIE development model consisting of five stages, namely analysis (analysis), design (design), development (development), implementation (implementation), and evalutation (evaluation). The data collection used is obseravsi, interviews, documentation and questionnaires. The data validity test using questionnaires at the development stage (development) conducted by three experts, namely design experts, material experts and linguists and practical tests using questionnaires are carried out at the implementation stage carried out by teachers and learners. The subject of this study was class III students at MI Al Ihsan Palembang which numbered 18 people. The results showed that the medium of learning e-book illustrated stories based on contextual teaching and learning (CTL) in thematic learning theme 2 subthema 2 class III at MI Al Ihsan Palembang is suitable for use in the teaching and learning process in the classroom. In the third validation test, the experts, namely design experts obtained a percentage of 92%, material experts obtained a percentage of 98% and linguists obtained a percentage of 98%. While the results of the respondents of teachers and students at MI Al Ihsan Palembang were declared very practical. In the results of teacher respondents obtained a percentage of 85%, the trial stage of a small group of learners obtained a percentage of 87% and the field trial of learners obtained a percentage of 91%. The results showed that the medium of learning e-book illustrated stories based on contextual teaching and learning (CTL) on the learning theme of 2 subthema 2 class III at MI Al Ihsan Palembang is suitable for use in the teaching and learning process in the classroom. Keywords: Illustrated Story E-Book, Contextual Teaching And Learning, Thematic Learning.