This article describes the process of the deconstruction and reconstruction of Islam in its transition from an Islamic to a Western culture, and does so from a hermeneutical perspective. In this process of reinterpretation of tradition ‘Western’ Muslims have a number of options: traditionalism, moderate orthodoxy, fundamentalism, radicalism and religious liberalism. On the basis of the process of change in orthodox Reformed churches in the last part of the twentieth century, I describe the process of change among Muslims who have to find a way in Western Europe. This process of reinterpretation in such a different context necessarily triggers off a discussion of the principles of fiqh and the right understanding of the Qur'an and hadith. In this discussion the ‘options’ mentioned arise. This hermeneutical analysis adds theological insights to processes of change and conflict that often are analysed only in terms of social-economic processes, and can help to understand the developments also from a theological perspective.