The twin issues of making peace and building it over time, which are very much at the forefront of social concerns in contemporary India, remain a major source of worry and require a thoughtful understanding. The lack of effort that has been dedicated towards the development of a systematic understanding of the psychological dynamics underpinning intergroup hostility and violence between Hindus and Muslims in India is disappointing to say the least. While elaborate analyses and accounts of these intergroup dynamics have emerged from academic disciplines such as sociology, political science, economics and history (e.g. Basu, Datta, Sarkar, Sarkar, & Sen, 1993;Brass, 2003;Engineer, 1995;Lal, 2003b; Ludden, 2005;Pandey, 1991;Varshney, 2002;Wilkinson, 2004), psychological theory and research with some predictive validity have been slow to emerge (Ghosh & Kumar, 1991;Hutnik, 2004;Kakar, 1996;Nandy, 1990;Singh, 1989). This brings to the forefront a couple of basic queries: (a) how can the discipline of psychology contribute towards the current understanding of intergroup dynamics in India and (b) can psychological theory and research translate into knowledge and action to promote peaceful coexistence in applied contexts?The objective of this chapter is to address these two questions which comprise the core of our account. We will begin this endeavour by briefly reviewing theoretical and empirical paradigms that have been explored previously. These will then be juxtaposed against the historical, social and political contexts of Hindu-Muslim relations in India to elucidate those issues that have been adequately investigated, but most importantly, those issues that need further elaboration and inquiry. Before embarking upon this assessment, we will provide a brief outline of the historical, political and social contexts of Hindu-Muslim relations in India. We maintain that for analysing socially meaningful phenomena it is necessary to depart from the habitually close confines of psychology's argumentation and to include historical, cultural, social and political perspectives in analysis and theorising (Valsiner, 2001). Consequently, this chapter aims to gather insights from other disciplines and integrate them with psychological understanding in order to help augment the psychology of peace and conflict resolution. 43 C