Religion-based violence is a complex phenomenon that causes not only physical damage but also profound psychological and spiritual wounds. This chapter examines the relationship between faith and forgiveness as two transformative forces in the post-religious conflict reconciliation process. Referencing the theories of “sacred ambivalence” and “cosmic war,” it is explained that religion can be a source of both violence and healing. The process of forgiveness, in this context, is not simply a moral act but a profound psychological journey that involves the recognition of wounds, the development of empathy, and the reconstruction of meaning. Two main models in forgiveness psychology—Enright’s Process Model and Worthington’s REACH Model—are highlighted as frameworks that can integrate spiritual and psychological aspects in facilitating the recovery of victims of religious violence. Beyond personal forgiveness, social reconciliation demands the recognition of truth, restorative justice, compassion, and peace. Peace psychology is presented as an integrative approach that bridges collective trauma with spiritual values. Case studies from Rwanda, Northern Ireland, Bosnia, and Indonesia show how local religious and spiritual practices can support interfaith healing and reconciliation. Ethical challenges such as the risk of re-traumatization, religious bias, and the limits of the role of psychologists versus religious figures are also critically discussed. This chapter suggests the need for interventions that are evidence-based yet sensitive to spiritual contexts, as well as collaboration between psychologists, religious leaders, and local communities to create a humane and inclusive recovery.