Madrassa is considered to be the main symbol of Muslim identity and culture. It is often said that the nations which forget their culture, are destined to perish. Today, the madrassa does not hold that place in our society, which it should have. The education system followed in madrassas does not seem to be effective and need based. It is not modern enough to interpret Islamic principles in the contemporary context. The sect-specific Islamic curricula of madrassas without any integration with sciences, arts, humanities etc, segregate it from any other need based educational system followed all over the globe. The purpose of the study is to identify the effectiveness of the madras education, difference among the various schools of thought in the term of effectiveness and what are the main factors which contribute in effectiveness of madras education. The effectiveness of madrassa education was estimated from a sample of 146 respondents, comprising teachers, students and parents. The data was collected through questionnaires with Likert Scale and focused group meetings. Measurement of data normality Skewness, Kurtosis, Kolmogorov-Smirnov and Shapiro-Wilk tests were used which result shows that data is normal and allow proceeding for the further investigation. One sample T-test was used to identify that various schools of thought are effective in imparting contemporary modern and need based education to its students which result shows that all schools of thoughts are ineffective. Measurement of Difference among the various schools of thought Anova was used which result shows that there is significant difference occur among these schools of thought in all dimensions. Regression was used to identify the predictors which are contributing in effectives of madrassas which result shows that all independent variables like pedagogy, Openness, Regulation and Curriculum have potential contribution in effectiveness. The education of madrassa students, who are mostly from lower social strata, is kept limited to religion and they can only be employed in religious sectors. This tendency, not only creates a social divide on the basis of poverty but also on the basis of approach / thinking. Reforms in the educational system of madrassas are needed by including scientific and non-theological subjects in curricula and improving the existing pedagogical practices. These also need to establish madrassa boards in conjunction with existing boards of educations so that madrassa students can also adopt a more productive course by accessing the mainstream professions.