This study looks at the living philosophy of the Khmer minority in Southern Vietnam, with an emphasis on how traditional ethical frameworks interact with contemporary social transformations. The study uses Theravāda Buddhist principles, communal activities, and philosophical analysis to examine how essential qualities like compassion (karuṇā), mindfulness (sati), and wisdom (paññā) continue to influence moral behavior and social cohesiveness. The study also looks at how modernization, such as education, economic development, and digital media, influences the adaption and reinterpretation of these ideals. Using a hermeneutic and dialectical method, the analysis shows that the Khmer community engages in a dynamic process of value harmonization, combining ancestral wisdom with modern knowledge and practices while maintaining ethical continuity. This research contributes to moral philosophy and intercultural ethics by illustrating a model of ethical resilience and contextualized universality, highlighting how local cultural traditions can adapt creatively to global changes while maintaining philosophical coherence. The findings have practical implications for cultural preservation, education, and community development, emphasizing the role of ritual, intergenerational dialogue, and ethical praxis in sustaining moral identity amidst social change.