Religious fundamentalism and inter/out group conflict have gained international concerns. Fundamentalism in relation to Islam is subject to debate and controversy, in particular because of the way in which Islam has been objectified as the fundamentalist by the West. Fundamentalism is understood as exclusive to religion. And the research intends to explore the responses, positions and views of Muslims in tackling the problem of fundamentalism and out group hostilities in Ethiopia, Kemisse City administration. Case study design was employed with qualitative research approach since it gives an understanding to the context or setting in which people behave. Primary data collection was undertaken mainly through Focus Group Discussion (FGD), key informant interview and observation. In line with the research objective and question, the major findings were the Muslims are starting to develop misperception and views towards Islamic fundamentalism and the US and their classifications with non-believers are gaining a huge momentum than ever before in Kemissie City administration. With the view to mitigate the above mentioned constraints, the following recommendations are forwarded. (1) Religious leaders must do a lot in sharing and teaching the principles of Islam. 2) The government should liftoff its hand and gives freedom to religious matters by restricting its role to create a secure environment.
Key words: Muslims response and views, countering fundamentalism, Islamic fundamentalism, in/out-group, hostility.
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