Museums increasingly serve as custodians of religious objects removed from their original sacred contexts, raising ethical questions about their display and interpretation. While these artifacts possess tangible significance as material culture, their intangible dimensions—ritual meanings, devotional practices, and community connections—are commonly diminished or recontextualized within secular exhibition spaces. At the intersection of religious heritage studies, museum studies and political philosophy, this paper explores how museums can bridge the tangible and intangible dimensions of sacred heritage, not merely as sites of preservation but as spaces of interfaith encounter. Drawing from case studies of European museums housing Christian religious heritage, this paper critically examines prevailing display strategies: (1) the irenic narrative that emphasizes historical interreligious harmony and (2) the juxtaposition strategy that presents religious traditions as equivalent through comparative display. While these approaches aim for inclusivity, they risk imposing top-down narratives that simplify or universalize religious heritage. Instead, we propose an alternative approach—a context-sensitive ethics of display—that neither isolates religious objects in their past nor reduces them to universalized cultural artifacts. By incorporating co-creation strategies and recognizing visitors as active participants in meaning-making, this model fosters a dynamic interplay between tangible heritage and the intangible dimensions of belief, memory, and lived religious experience. In brief, this paper identifies and advocates for exhibition strategies that acknowledge religious objects' evolving meanings while fostering inclusive, co-created narratives. In doing so, it contributes to discussions on how sacred heritage can be activated beyond traditional conservation frameworks, ensuring that tangible preservation does not come at the expense of intangible cultural expressions.