The current research aims to examine the importance of tourism development as an essential element for building peace in Kashmir and Jammu (J&K). Peace through tourism is the reduction and eventual elimination of the conditions that lead to the violence. This research has also aimed to look after religious tourism, which has great potential for rejuvenating the dormant religious beliefs of people and the cross-border trade that will open new routes for harmony by securing each other's interests. Non-probability convenience random sampling technique was used to select the sample. Self-administered questionnaires were distributed amongst 275 local residents in J&K, where 240 questionnaires were received back and found to be useful. Data was analysed by using SPSS version 21.0. The findings of current research confirm that the stakeholders and community play a major role in shaping the development and promotion of sustainable destination. Tourism contributes positively to the guest-host relationship, regional economy to increase in income and cross-cultural understanding. Further, findings of current research also disclose that tourism plays an essential role for promoting peace, which leads to cross-cultural interaction resulting intolerance, national integration, compassion, goodwill, educational standards, justice and mutual respect for each other. Implications, limitations of the study and future research suggestions are also discussed.