As large numbers of Muslims continue to establish themselves in the West, they inevitably have to deal with the challenge of secularism. The fundamental question which is often asked is: how can a Muslim maintain his faith in a largely secular environment? Attempts to deal with this issue have led to the establishment of religious centres, Islamic schools, and various faith-oriented organizations, all within the framework of a multicultural society. A more recent effort is the attempt to incorporate Shari’ah-based arbitrations within the secular legal structure. In Canada, such an effort was met with unfortunate results. This paper attempts to understand the reasons for the unsuccessful endeavour to establish a Shari’ah-based tribunal system in Canada within the greater context of the conflict between religion and secularism, particularly in the modern world.