Abstract: The article is devoted to the role of the Islamic factor in international relations between Algeria and Morocco in the post-colonial period. The author of  the article analyzes Morocco's and Algeria's models of managing the internal religious sphere, provides a review of the main religious organisations in these two countries and gives their brief descriptions. The author also studies different tools and initiatives used by these states to implement their external religious policy. He also describes how Algeria and Morocco use these resouces in their long-term confrontation for regional hegemony. In his research the author has applied the comparison approach and historical research methods that allow to analyze the experience of these two countries in their religious diplomacy. In conclusion the author states that Morocco leads a more successful religious diplomacy. However, in recent years the government of Algeria has been considering the religious factor in terms of their external policy and its role in achieving national interests.