This article examines how interfaith youth communities in Indonesia use religious literacy for grassroots peacebuilding in diverse religious contexts. Based on qualitative case studies from Muslim-, Hindu-, and Christian-majority regions, the study highlights youth-led initiatives that promote interreligious understanding, civic cooperation, and social inclusion. Through interviews, observations, and document analysis in five cities, the findings show that sustained engagement helps youth build critical religious literacy, challenge stereotypes, and foster locally rooted peace strategies. Moving beyond institutional frameworks, the study emphasizes youth agency in navigating complex religious dynamics. It contributes to global peacebuilding discourse by showing how youth-driven religious literacy can support inclusive and participatory models of coexistence, relevant not only in Indonesia but also in other plural societies.