The article's main focus is on exploring ways in which modern forms of values education are being utilized to address major issues of social dissonance, with special focus on dissonance related to religious difference between students of Islamic and non-Islamic backgrounds. The article begins by appraising philosophical and neuroscientific research relevant to the underpinning concepts behind such forms of education. It then explores evidence from the federally funded Australian Values Education Program, and its various related research projects, that suggests that values education has potential to impact on a range of educational measures, including those related to enhancing understanding and tolerance across lines of religious difference. (Contains 1 figure.)