This article rigorously analyses the dual function of religion in today's society as both a catalyst for worldwide discord and a means of global change. The article posits that the ambiguous potential of religion is not dictated by theology, but rather influenced by certain historical, political, and social contexts, drawing from several multidisciplinary studies. The examination investigates the role of religion as a symbol of distinct identity exploited by political leaders, how sacred scriptures interpreted through literalist and exclusivist perspectives can legitimise violence, and how modern conflicts illustrate religion as a magnifying factor for existing tensions. The paper concurrently investigates the transformative potential of religion in fostering peacebuilding, transitional justice, and reconciliation, leveraging moral authority, global networks, and entrenched community involvement. Case studies on religious ambivalence demonstrate that a single tradition can both incite discord and promote harmony, as illustrated by the Israeli-Palestinian conflict, reactions to HIV/AIDS in sub-Saharan Africa, and religious environmentalism. The piece highlights significant obstacles such as institutional self-interest, religious exclusivity, and the issue of converting theological beliefs into practical policy across diverse contexts. The conclusion advocates for a discerning fidelity, a dedication to one's own heritage that stays receptive to discourse, self-improvement, and cooperation amidst diversity. The essay presents four suggestions for religious leaders, governments, and academics aiming to leverage the positive aspects of religion while minimising its harmful effects in tackling modern world issues.