The concept of Jihad in Islam has long been a subject of scholarly debate, political discourse, and media portrayal. While the term Jihad is often translated as “struggle” or “striving,” its meaning and interpretation have evolved over time, influenced by religious, historical, and socio-political factors. Classical Islamic thought presents Jihad as a comprehensive struggle encompassing personal spiritual discipline, intellectual and social activism, and defensive military efforts. However, in contemporary global narratives, Jihad is frequently equated with violence, terrorism, and extremism, leading to widespread misconceptions that impact both Muslim and non-Muslim communities. This research aims to provide a nuanced understanding of Jihad by examining its historical origins, theological foundations, and modern interpretations. It explores the distinction between Greater Jihad, which emphasizes self-improvement and moral struggle, and Lesser Jihad, which involves armed struggle under strict ethical guidelines. The paper further investigates how modern Islamic scholars and organizations define Jihad in the context of peacebuilding, social justice, and international law, countering the rhetoric of extremist groups that manipulate the term for ideological and political purposes. Additionally, this study critically analyses how the media, political discourse, and global counterterrorism policies have contributed to the misrepresentation of Jihad. It assesses the role of Western and Islamic media in shaping public perceptions and highlights how misinformation fuels Islamophobia and hinders interfaith dialogue. By examining case studies of reformist Islamic scholars and peace initiatives, this paper identifies efforts within the Muslim world to reclaim the authentic meaning of Jihad and promote a non-violent, ethical, and socially responsible interpretation of the concept.