<p>Pakistan is a religiously pluralistic society that has been plagued by inter-religious conflict. Given that religious tolerance is key to a progressive and harmonious society, it is essential to understand the impact of engagement with religious texts on the tolerance and mental health of people in the country. This mixed methods study aims to quantitatively identify (i) the relationship between engagement with religious text, religious tolerance, and mental health, and (ii) which religious groups show comparatively better religious tolerance. In the second phase, the study aims to collect qualitative data to understand whether religious texts influence religious groups in Pakistan in terms of inter-religious tolerance and what challenges they face in achieving interfaith harmony. We purposively collected data in Lahore, Pakistan, from graduate degree holders who regularly visit religious centers. Quantitative data revealed that higher engagement with religious texts among educated individuals who read them with a critical understanding is associated with improved religious tolerance and mental health. Qualitative analysis from 289 respondents revealed that religious text from all six groups—Ahmadis, Christians, Hindus, Muslim Sunnis, Muslim Shias, and Sikhs—promotes tolerance, peace, humanitarianism, and service and trade with each other. Challenges to interfaith harmony include fear of misuse of religious misinterpretations and laws, illegitimate scholars, political agents, illiteracy, and unregulated social media. The study concludes with salient recommendations to promote interfaith harmony in the country and support the mental health of religious minorities.</p>