Muslims through time have been accustomed to regarding themselves as constituting "a middle" or "moderate nation/community" (Ar. umma wasat) on the basis of Qur'an 2:143 which applies this designation to them. This designation has been enthusiastically adopted by Muslims as an indication of divinely-conferred distinction upon them and as a divine mandate to avoid extremes in one's beliefs and conduct. What is less well-known, however, is that this verse has its parallel in Qur'an 5:66 in which righteous Jews and Christians are also described as constituting a "balanced" or "moderate" community" (Ar. umma muqtasida). In these two verses taken together, the Qur'an thus suggests that it is subscription to a common standard of righteousness and upright conduct that determines the salvific nature of a religious community, and not the denominational label it chooses to wear. Such a view transcends sectarianism and offers the possibility of formulating universal principles of ethical and moral conduct which help contribute to the formation of a moderate and tolerant global community today. Several questions undergird this research. How have Muslims through time understood "moderation" and its implementation in communal lifem How did this self-understanding as a "middle/moderate community" shape individual and collective Muslim identity as well as relationships with non-Muslims Does the concept of moderation have a bearing on the concept of tolerance, particularly of religious "Others " What are the implications of this historical discourse for inter-faith relations today and for the retrieval of universal principles of just and humane conduct In the course of this paper, I attempt to answer these questions by looking primarily at a cross-section of Qur'anic exegeses from the earliest period (eighth century) to modern times, which discuss both Qur'an 2:143 and Qur'an 5:66. The exegetical works consulted include those by Mujahid b. Jabr (d. 104/722), Muqatil b. Sulayman (d. 150/767), al-Tabari (d. 310/923), al-Razi (d. 606/1210), and Muhammad Abduh (d. 1905). In this manner I will trace the diachronic understanding of "moderation" as expressed in the writings of some of the most prominent Muslim exegetes and thinkers, grounded in their specific socio-historical circumstances. As the topics of moderation and tolerance gain center stage in contemporary Muslim societies, particularly in the post-September 11 environment, a comprehensive interrogation of these issues as presented in authoritative texts is timely and relevant.