This study aimed at producing an integrated thematic book in terms of Indonesian Language and Literature for grades I and II with local Balinese wisdom. Therefore, in year 1, exploration of themes/subthemes of the materials was conducted. In year 2, the draft plan was developed into a draft of the book. In year 3, the draft of the book was tested from the validity of experts, content, design, and media (Nieveen, 1999, Yamasari, 2003, Thiagara Jan 1974. Users' responses were based on field testing (Borg and Gall 1989 and Kusmariyatri, 2012). The methods of data collection were a questionnaire, observation, interview, and test. The results showed that: (1) integrated thematic book with sustainable local of Bali was qualified as a textbook. (2) The validity (experts, content, design, and media) was qualified as valid. Students' understanding valued 75 (good). Thus, this thematic book was qualified as teaching materials.