The purpose of this study is to closely examine the life and leadership skills of Prophet Muhammad (pbuh) in order to discover conflict resolution strategies adopted by the leading figure of Islam and evaluate those lessons to ascertain possible solutions to the contemporary global problems and challenges across the globe. Understanding is the catalyst for peace. This paper also aims to contribute to world peace and interfaith dialogue albeit its limited capacity in scope through the illustration of the exemplary character of this well-known persona who is not otherwise very well understood in largely the non-Muslim world but also within the Muslim world. Particular attention is paid to the identification of key attributes of a successful leader in the light of Muhammad (pbuh)'s success. A cross-examination of the evidence available to us, it is strongly noteworthy that Muhammad (pbuh) showed great respect for other faiths, cultures and ideas; even when he did not agree on certain matters, he listened and engaged with tolerance and sensitive care. His service of what he ardently believed to be the truth and his style and approach in dealing with would oppose those beliefs provides an acute insight on the character of this leading figure of Islam whose success in overcoming almost impossible barriers and conflicts at many layers of society becomes a strong case-study for modeling conflict resolutions beyond its theoretical frameworks and examine this applied science in the art of leadership and peace building. This paper would then conclude that one of the greatest legacies of Prophet Muhammad (pbuh) is the essential appreciation of the dignity of all living beings irrespective of their gender, race or societal status; with Muhammad's followers from diverse socio-cultural and socio-lingual backgrounds, ethnicities, civilizational development ' this essential attribute becomes noteworthy to examine closely the veracity of his appreciation, respect and dignity afforded to all.