This study explores the complex relationship between Islam and fundamentalism in the context of contemporary challenges. The research employs descriptive and thematic content analysis methods to examine the origins, characteristics, and impacts of Islamic fundamentalism in social, political, and cultural contexts. It highlights the tension between the rich tradition of Islam and rapidly changing contemporary realities. While fundamentalism often claims to uphold the "purity" of tradition, the research shows that rigid interpretations often conflict with modernity, human rights, and pluralism. The study also analyzes the role of historical, social, economic, and political factors in shaping the development of fundamentalist movements. It discusses the interpretation of Islamic texts, particularly the Qur'an, using the Maudhu'i method, which emphasizes the analysis of content meaning and its historical and social context. The findings reveal the complexity of the dynamics between Islam, fundamentalism, and contemporary challenges. The research underscores the importance of understanding the diversity of Islamic interpretations and the need for moderate approaches, tolerance, and adaptability in responding to these challenges. The study concludes that a deep understanding of Islam and fundamentalism is essential for promoting reconciliation, dialogue, and peace among Muslim and non-Muslim societies.This study explores the complex relationship between Islam and fundamentalism in the context of contemporary challenges. The research employs descriptive and thematic content analysis methods to examine the origins, characteristics, and impacts of Islamic fundamentalism in social, political, and cultural contexts. It highlights the tension between the rich tradition of Islam and rapidly changing contemporary realities. While fundamentalism often claims to uphold the "purity" of tradition, the research shows that rigid interpretations often conflict with modernity, human rights, and pluralism. The study also analyzes the role of historical, social, economic, and political factors in shaping the development of fundamentalist movements. It discusses the interpretation of Islamic texts, particularly the Qur'an, using the Maudhu'i method, which emphasizes the analysis of content meaning and its historical and social context. The findings reveal the complexity of the dynamics between Islam, fundamentalism, and contemporary challenges. The research underscores the importance of understanding the diversity of Islamic interpretations and the need for moderate approaches, tolerance, and adaptability in responding to these challenges. The study concludes that a deep understanding of Islam and fundamentalism is essential for promoting reconciliation, dialogue, and peace among Muslim and non-Muslim societies.