This paper examines the origin of prophet Muhammad`s peace thought and its historical and theoretical development within Muslim community. Especially, I pay attention to the possibility of a theory of Jihad for communication and coexistence in the 21st century on the basis of Islamic pluralism. First, exploring the life of Muhammad, I distinguish the revelations of Mecca from the revelations of Medina. After he moved to Medina, his responses to non-Muslims became more violent and restrict. It should be noted that Muhammad`s early concept of peace was fundamentally rooted into the peace among Muslims who believed in unitarian Allah. Second, I explain several typological studies of Jihad and point out the complexity of Jihad. Jihad has also defensive and spiritual dimensions. We should understand the system of Jihad from Muslim`s perspective of territory and cosmos. Third, I analyze non-violence movement led by Badshah Khan in Pakistan. He also regarded Muhammad`s thought and action as the resources of peace movement. Fourth, Muslims in non-Muslim world, who encounter the Western democracy and secular humanism. have developed an alternative model of Islamic pluralism rather than the traditional model of Islamic universalism. Though the pluralistic model has a difficulty in forming Muslim unique identity, it contributes to the communication and coexistence of Muslims and non-Muslims in multi-cultural society, including Korea.