The misunderstanding of takfir issue among Muslim community already existed since long time ago and this situation still occur until this day. There are various factors contribute to the development of takfir issue, including differences in views among Muslim society. The objectives of this study are to understand the impact and rulings of takfir from Islamic principles and to analyze the approaches that can be taken to overcome the misunderstandings of takfir issue from dakwah perspectives. A clear understanding of takfir can help to address this issue from spreading further among the community. Muslim preachers need to play a significant role in curbing the misunderstanding of takfir issue. The methodology used to collect data involved textual analysis from various sources such as books, journals, e-books, and others. Additionally, interviews were conducted with several academicians proficient in dakwah field to obtain additional information to complete this study. The findings of the study indicate that takfir can only be performed when there is clear evidence, no coercion from any party against the individual being declared as kafir, and thorough assessment by religious institutions that are responsible in Islamic matters. Individuals or groups cannot arbitrarily declare others as kafir as it can have significant impacts in this world and the hereafter.