"Islam is a religion of peace. Those who are intolerant harm their own faith and their own brothers," the Tibetan spiritual leader was quoted as saying in Bangalore, southern India, where he took part in a seminar on peace and the economy.
Dalai Lama says climate change destroying Tibet's "roof of the world"
Even so, "there has to be dialogue, with IS as well," the Dalai Lama said, in remarks reported in Italian.
Asked how this should be achieved, he replied, "Through dialogue. One has to listen, to understand, to have respect for the other person, regardless. There is no other way."
Dalai Lama says Bihar state vote shows India's 'harmony'
A US-led coalition and Russia have vowed to crush the IS, also called ISIS, ISIL or Daesh, which monitors say has carried out executions, abductions and rapes in areas under its control in Iraq and Syria, and conducted a wave of terror operations abroad.
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