This paper seeks to explore the role of “Madrasa” education in constituting a cultural transformation of Muslims in South Asian contexts especially reference to Kerala society. Madrasa education has defined the broad framework of Islamic fundamentalism and terrorism after the 9/11 incident, whereas madrasa education was the primary context where Muslims started to grow and field of resistance to post-colonial counteracts. Islam represents a religion that fought with internal contestations and different identities with differences of opinion on reform and modernity as well as orthodoxy. The Muslim public sphere in Kerala illustrates that authentic question was true Islam and debated among various theological groups in the Muslim community (Santhosh: 2013).This paper discusses the role of traditional ulemas in constituting Muslim community and their role in the modernisation of Madrasa education. What is crucial is, internal contestations have played a significant role in Modernization of Madrasa and Muslim community. Modernity brought the question of Islamic authenticity and genuine Islam into the forefront of public debate within Islam and Islamic communities (Browers, Kurzman). The important objectives of this paper are to see how the reform movements enhanced “Madrasa” education in the more structured way and, whether they have succeeded in complete modernisation in Madrasa education.