Prejudice, both faith-related and faith-promulgated, has historically been a powerful force behind conflicts that have fundamentally transformed the world’s political geography and societal structures over the centuries. When discrimination is specifically aimed at the practitioners of Islam, it is akin to a form of cultural racism and is unequivocally labeled as Islamophobia [1]. Islamophobia is a spatialized process and, based on the geographical location, can be influenced by a myriad of local and global issues [2]. In the Indian subcontinent, there are significant regional differences in mindsets toward Muslims and Islam. This chapter seeks to describe these attitudes and provide a historical narrative of the factors that perpetuate Islamophobia, as well as those that dispute this social evil in the region. It elucidates the complicated relationship of unresolved trauma, colonial influences, and religious harmony in the spirit of nationhood, from the perspective of a Hindu psychiatrist. Lastly, it endeavors to empower clinicians to navigate cultural trauma and its effects on mental well-being.