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The current paper addresses the crucial need for a revival in the curriculum taught at higher education institutions in Pakistan. Issues like an increase in hate crimes, racism, sectarianism, and religious intolerance are attributed to unfamiliarity with fundamental character-building doctrines of Islam, such as forgiveness, tolerance, equity, and peace. The paper further analyses the effectiveness of contemporary counter-terrorism approaches and conflict resolution theories to emphasize religion’s role in peace-building and conflict resolution. For grounding the research in empirical evidence, data was collected through structured interviews from a sample of 50 students selected using convenience sampling in higher education institutions. Findings from thematic content analysis suggested that research participants were unaware of the conflict resolution and peace-making doctrines governing an inclusive Islamic society. Therefore, the research proposes that Character Development Program (CDP) specifically aimed at Muslim students may be included in the basic curriculum taught at universities. The content of the CDP should be deduced from Quran and Sunnah for raising a religiously, morally, and spiritually aware youth. The paper concludes by proposing an intercultural sensitivity model to measure the effectiveness of workshops and training sessions conducted under CDP