The study aimed to find out the impact of tertiary education on development of moderate Islamic society in Pakistan. The population of the study constituted of all the teachers engaged on teaching and all the students studying in the colleges. The study was delimited to the area of public sector college education. Cluster sampling technique was used for choosing a sample from 100 male and 100 female colleges. Three teachers and nine students were selected from each college. Two questionnaires were used as the research instruments for collection of data after pilot testing. Collected data was tabulated, analyzed and discussed category-wise as teachers and students. To analyze the data, mean, standard deviation, standard error of mean, estimated population mean and Z-Value were applied for getting the results. On the basis of the analysis it was concluded that college education promoted the modern way of life in society by giving sense o responsibility, improving women status and removing frustration. It improved confidence, awoke love feelings for country and the sense of responsibility.