<p>This paper examines interreligious education as a curricular approach in higher education to reduce racism among the multi-religious and multi-ethnic communities in Malaysia. Education has a significant impact on individual development, and it can either promote or reduce prejudice while fostering tolerance. Lessons learned in school continue to shape individuals as they grow, and education extends beyond the classroom. At the same time, these lessons shape students’ attitudes and perceptions, including the surrounding multi-ethnic community. In a recent development, more Muslim parents in Malaysia opt for religious education for their children, resulting in more students being enrolled in Islamic educational institutions at the primary and secondary levels. This situation may lead children to socialize more with peers of the same religion, making it more difficult for them to adapt to a diverse society. Although Islamic religious education may be comprehensive, it is unclear to what extent it prepares children to interact with non-Muslim peers. Moreover, although children may attend the same primary or secondary school, those from different religious backgrounds are often taught separately by teachers assigned to their respective religious or moral education classes. For example, Muslim students are taught Islamic Education, whereas non-Muslim students are typically taught Moral Education. The separation of students in a multi-religious and multi-ethnic setting from a young age may contribute to racial prejudice, which may be understood as an unreasonable dislike of a particular race. In the worst-case scenario, it may lead to racism, or the belief that people of some races are inferior to others. In a multi-ethnic country, prejudice and racism may threaten social unity if they are not appropriately addressed. This presents a challenge for Malaysia to develop a curriculum that is appropriate, not only for Muslim students, but also for students from various religions, ethnic and cultural backgrounds. This issue should be explored so that the curriculum can be made more comprehensive and aligned with the universal teachings of Islam. As a result, this paper examines the role of interreligious education as a crucial field for enhancing mutual respect, better understanding, peaceful coexistence, and the reduction of racism. Religion and education must work together to foster a more holistic form of interreligious learning and to support harmonious coexistence. To further promote peace and harmony, this paper also offers suggestions for developing interreligious curricula at the higher education level. This paper employs the qualitative methodology that includes library research and interviews. It is hoped that this study will serve as a mechanism for enhancing cross-cultural religious communication as well as fostering understanding, tolerance, and social cohesion among multi-ethnic students.</p>