Contemporary Muslim-Christian relations, globally as well as in the Middle East and in Egypt – the case study for this research – are influenced by a multitude of dynamic political, social, cultural and economic factors. Utilizing the Protracted Social Conflict theory as an overarching framework, the dissertation makes use of additional concepts and frameworks to explain and understand the context of sectarian conflict and coexistence in Egypt, identifying the root causes of intercommunal tension that are embedded in centuries of history and the contemporary approaches to mitigate this tension, focusing on interfaith dialogue processes. Through literature review and in-depth interviews with key interfaith interlocutors and observers, the research highlights the contextual challenges and successes of Christian-Muslim dialogue processes, seeking to highlight the structures and qualities of dialogue that promote conflict prevention and amplify social capital among the faith communities. The dissertation concludes with an optimistic perspective of the status of social capital and interfaith relations in Egypt despite the continuing challenges in the post January 25, 2011 revolution context. It also demonstrates the utility of an enhanced theoretical framework for understanding sectarian tension and conflict and linking it integrally with ways of mitigating it, namely through more robust and creative interfaith dialogue mechanisms.