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Religious conflict is a controversial subject in a multicultural country. This issue happens regularly in Malaysia especially in a country which recognized Islam as its official religion. There are many ways dealing with religious conflict in Islam. One of them is co-existence approach (fiqh al-ta'ayusy). The objective of this paper is to explain the co-existence approach (fiqh al-ta'ayusy) as a way to promote harmony and to cope with religious conflicts. The study is based on previous literatures and it has been adapted to suit Malaysia's religious conflict. Findings showed that the co-existence approach in Islam is divided into three namely inter religious dialogue, preaching of Islam and acceptance of other religions. Besides that, this approach must maintain the dignity of Islam and at the same time treating non-Muslims with respect and universal values. The acceptance of other religions however, must not include the religious pillars such as faith and worship. This is crucial in order to ensure the harmony of interaction without eliminating Islam like what has been propagated by the pluralists. Thus, this paper will explain on the Islamic approaches of interacting and communicating with non-Muslims. [ABSTRACT FROM AUTHOR]