All praise is due to Allah and peace and blessings of Allah be upon the most honourable Prophet Muhammad bin Abdillah, his family, companions and those who follow in their footsteps. This is a simplified study that explains how to Muslims should deal with the People of the Book (Jews and Christians) in which I have been keen on establishing the truth away from any extreme views following the provisions contained in the Holy Qur'an and the Prophet's Sunnah through his actual life. I also followed the method used by our rightly guided predecessors including the Prophet's companions and the scholars who followed in their footsteps.