This theoretical study examines the Qurʾānic ethics of diversity as a basic structure for resolving sectarian and ethnic arteriosclerosis in South Asia through change in education. Derived from key Qur’ānic texts, including 49:13 and 30:22, the present study investigates how divine recognition of human difference functions as a theological counter-narrative to exclusivist religious ideologies and ethnocentric agendas. The paper uses a discourse that critically considers classical and modern Islamic scholarship to develop a model that sees mutual recognition (taʿāruf), ethical disagreement (ikhtilāf) and moral consciousness (taqwā) as the key concepts in Islamic educational philosophy. Relying on qualitative and textual analysis, the study shows that sectarianism and ethnic violence can be viewed not only as sociopolitical crises, but as a trace of missing Qur’anic pluralism. It also presents implementable educational prescriptions that integrate principal values of Qurʾān into the curricula and the pedagogy, especially within religious and interfaith educational settings. Through advocating a Qurʾān-centered pedagogy of diversity in this paper, utmost attention is given to the potential for transformation embedded in Islamic education to create a more inclusive and peace-abiding society as more moral. The outcomes are essential implications for Islamic learning institutions and policymakers looking for faith-based solutions to communal conflicts in the region.