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Sri Kartarpur Sahib is one of the most sacred religious sites for over twenty-seven million followers of Sikh religion around the world. This religious site known as gurdwara became a part of the premises of the state of Pakistan according to the partition plan in 1947. Sikh pilgrims desiring to visit this sacred place have always found it difficult due to the tensions between the two states of India and Pakistan. Finally, in August 2018, the newly elected Pakistani government under premiership of Mr. Imran Khan announced its intention to build a connecting corridor from Dera Baba Nanak in India to Kartarpur Sahib for the Sikh pilgrims. While it was generally considered a highly positive gesture towards building peace in the region, there was some negative response from the Indian side in particular. This paper discusses brief history of Kartarpur Sahib, the implications of the decision of constructing corridor by the Pakistan government and its importance in building peace between the two states and creating inter-faith harmony within Pakistan. An exploratory, historical and descriptive method has been applied. Besides consulting books and newspaper reports on this issue, two interviews were conducted to analyze contemporary situation. The results show that the move by the Pakistani government can very well be considered a way forward in peace building process and hurdles in implementation of a peace-oriented gesture need to be removed to promote inter-faith and inter-state harmony.