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This research has been conducted with purpose to erase misunderstanding of Westerner about Islam. Islam originates from the word "Salam" which means peace, submission and tolerance. Islam has never preached for intolerance, hatred and violence. It has despised violence and bloodshed and having no place for extremism. Islam is a religion of moderation rather than extremism. The Holy Quran enshrines benign treatment and attitude even towards non-believers, who are residing in Muslim state and to guarantee them all their basic rights of life and property. It negates hatred and fundamentalism and stands for universality. There arises question that how this situation has been muddled and the real soul of Islam is distorted? How incendiary norms have been infested in federally administered tribal areas of Pakistan? There is a need for implementation of anti-terror laws and to condemn terrorism in all its manifestations.