Moral and character building is the major aim of education. All of national educational policies have placed religious education at vital position and our education system has been imparting religious instruction since its inception. However, at present, the intensity of religious education in our country has become a hot issue nationally and internationally. Moral development of children through the subject Islamiyat and complete religious education given in Deeni Madaris is under question. The syllabi have been changed. It was the need of time to investigate whether religious education is supporting the moral development of children and what is the difference between moral reasoning of students of Deeni Madaris and that of public schools. The research has revealed the effect of religious education with different intensity at different stages. The book will help religious practitioners to identify optimum age level to impart religious instruction and to adopt appropriate strategies to inculcate universal moral values in children.