This study steers clear of the stereotype conception of madrasas as the training ground of terrorists. Its chief concern is the search for the ground of realities about madrasas, what and how they teach; and whether the syllabus or ambience of madrasas prepares the students for successfully facing the challenges of the modern world. It enquires into the reasons for a relatively large number of Muslims opting for madrasas education for their children. A sociological analysis is therefore undertaken. The work also tries to understand the almost universal nisab or syllabus of madrasas, called Dars-i-Nizami, developed during Aurangzeb's time, and notes that there have been very few marked changes in the madrasas syllabus, though the world and life have moved so much ahead. A large portion of madrasas syllabus, therefore has become irrelevant for modern times. The author convincingly argues that most Muslim children must study in modern schools and only a small number who want to specialize in theology should study in madrasas. The Study pays particular attention to the proposals for madrasa reforms, both from within the system, and the madrasa modernization scheme of the government.