The paper will build on the case made by Bhikhu Parekh (2002) for the development of inter-cultural dialogue as the most strategically rational response to addressing terrorism and its underlying causes. The author relates Parekh's case to the literature on inter-faith dialogue as well as the author's own empirical involvement in a grassroots Muslim-Christian dialogue in the western suburbs of Melbourne following the events of September 11, 200/. The paper considers the nature and aims ofinterfaith dialogue as well as intercultural dialogue, and explores how a dialogical approach to intergroup (including international) relations can assist in the development of a citizen-based, participatory and networked approach to local community development as well as global security.