This literature review examines the role of religion as a platform for inclusive and community-based education in the twenty-first century. It is evident from the research that there has been a growing interest in understanding religion in education in the past decade. The focus on spiritual and religious beliefs of school leaders has identified the factors that influence school ethos to create a sense of community between school leaders, staff, students, and wider community. Faith-based schooling may have implications for teachers, who identify as homosexual, because they feel the pressure to pass on the faith that contradicts their own identity. The issues surrounding those of minority beliefs were explored through the discourse of acculturation, in particular assimilation. The focus of this review takes into consideration the student relationships between school and religion, the impact of respect from peers, the implications on students and teachers seeing religious education as a challenge, and the controversy and imbalanced nature of religious minority schools.