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Madrassa is a controversial educational institution of Pakistani society. International scholarship is polarized on madrassa issue and presents two divergent pictures of this institution: one, it is a source of radical ideology, and thus, a security threat to the modern world; and two, it is a net of social security for underprivileged who are ignored by the state’s social services. This paper, rather than taking position on either side, documents the perceptions of religious teachers, and thus, tries to discover the answers of certain questions; like, why is madrassa a controversial issue; why does it exist in society; why do certain students join madrassa; what is funding sources of madrassa; and what is educational ideology of this institution? The paper is based on views of sixteen religious teachers; and the data were gained through two detailed sessions of focus group discussions, in Lahore, Pakistan.