The modern history reveals that the presence of Muslims in Europe represents a challenge for Muslims and European communities alike. However these challenges are not justifiable if human values are adopted and fostered on various levels. The problem here is the prevalence of violent terrorism and radical discourses that attempt to exploit some tensions to deepen differences. Genuine religious values show that diversity is God's Will and it can be employed to best enhance human interaction. Formal religious institutions realize these facts and spare no effort to implement them in various contexts and communities. Al-Azhar suggests that the key solution lies in activating the concept of citizenship which in turn leads to Muslims integration in there respective societies. Theoretical frameworks ate good in this regard, but there should be practical steps to translate these frameworks, and this is what Al-Azhar strives to do. The paper suggests that European societies need to foster policies of respect and tolerance as these values are capable of encouraging Muslims to better integration. Key words: Cultural challenges- Muslim Communities- Al-Azhar-Integration -religious institutions- tolerance- respect- citizenship