Belief follows reason and understanding...

Belief follows reason and understanding; and nothing but reason and understanding can create it. “There is no compulsion in religion” may be treated as a bit of information or a piece of legislation. If it is information of a creative decree, it will give rise to a legislative order that compulsion should not be used in matters of belief and faith. And if it is an order in the form of information then the meaning is clear.

Apparently, this alternative is more correct, because the next sentence (“truly the right way has become clearly distinct from error”) gives the reason for this legislation. And this prohibition of compulsion for religion is based on a factor of creation: the fact that compulsion can influence physical action but not matters connected with the heart and conscience.

“Truly the right way has become clearly distinct from error”: As mentioned above, it gives the reason for the prohibition of compulsion. A wise person resorts to compulsion only when the truth of the order cannot be explained, either because the person so coerced has no capacity to understand it or for some other reasons.

But there is no need for compulsion in an important matter whose advantages and disadvantages are clearly defined and the reward and punishment of accepting and rejecting well-explained. A man, in such a clear matter, should be free to choose his course of action himself - whether he takes it or rejects it, whether he wants the rewards of obedience or is prepared to take the punishment.

The realities of religion have been explained, and its path well-laid; the divine revelation and prophetic explanation have illuminated this highway to the utmost degree. It has now been made clear that the religion is truth, that the only right thing is to accept it and follow it; and that if one deviates from this road he will fall in perdition. Why should anyone, after all these clarifications, compel others to follow the religion?

It is one of the verses that show that Islam is not based on the sword and killing, and that it does not allow Muslims to compel or coerce others to accept Islam. It is contrary to the view held by many Muslims and non-Muslims alike that Islam is the religion of the sword. They bring as their evidence the legislation of jihad which is one of the pillars of Islam.