The purpose of the present paper is to survey and analyse the concept and significance of religious tolerance and Universal brotherhood in Imam Ali’s teachings, especially his Nahj al Balagha. Islam admits the freedom of thought, free expression of opinions, and exercise of independent judgment in religious matters. It also acknowledges tolerance among religions, religious communities, nations and tribes and commands mutual understanding and cooperation among all people as we shall demonstrate with clear proofs. Hazrat Ali, in line with the Islamic teachings, regards the people either brothers in religion or one like you in creation. Therefore, he believes to regarding safety of all people, especially non-Muslims. The principle of equality was established for the entire mankind as its birth right, forbidding inequality or discrimination on the ground of tribe, nationality and family, as mankind belongs to one Universal brotherhood. This Universality is based on three pillars which are first the Universality of the Muhammad and Message and second the Unicity of God and therefore the unity of religions and third the unity of mankind. He sent the holy Prophet to manifest His commands and speak about His remembrance. Consequently, he fulfilled it with trustworthiness, and he passed away while on the right path. Imam Ali believes that the governor must rule with mercy and tolerance towards all his subjects.