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This article investigates the role of Muslim youth in promoting religious moderation at grassroots levels in Indonesia, particularly focusing on how current government policies may fall short by overemphasizing security and deradicalization while adopting a top‑down approach that limits youth participation. It draws on qualitative data—including in‑depth interviews with students, academics, activists as well as observations of interfaith dialogue groups and document analysis—conducted in the cities of Semarang and Yogyakarta. The authors argue that youth, through their participation in Islamic organisations and youth forums, possess lived understandings of moderation and are therefore under‑utilised as partners in inter‑religious and intra‑religious dialogue. The article proposes policy strategies that shift the emphasis from a narrowly security model to more inclusive, participatory frameworks that empower youth in interfaith initiatives and build sustainable grassroots moderation.In an era when questions of religious pluralism, youth engagement, and radicalisation prevention are high on policy agendas globally, this article addresses timely concerns about how moderation is operationalised in real‑world communities. It has practical relevance for designing community engagement programmes: by centering youth voices, it encourages inclusive interfaith dialogue, peer‑led initiatives, and grassroots mobilisation rather than purely top‑down security interventions. For extremism rehabilitation and prevention, the study highlights the significance of youth forums and inter‑religious education as mechanisms for fostering positive relational networks, reducing alienation and enhancing social cohesion. It thus offers actionable insights for community organisations, educational institutions and policy‑makers aiming to build local resilience and genuinely participatory moderation frameworks.The article is a valuable and timely contribution to scholarship on religious moderation, interfaith dialogue and youth engagement. By foregrounding grassroots dynamics and youth as agents of change, it offers both conceptual and practical insights that are relevant to academics, practitioners and policy‑makers working in the field of religion, pluralism and social cohesion.The article is a valuable and timely contribution to scholarship on religious moderation, interfaith dialogue and youth engagement. By foregrounding grassroots dynamics and youth as agents of change, it offers both conceptual and practical insights that are relevant to academics, practitioners and policy‑makers working in the field of religion, pluralism and social cohesion.