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The foreign secretary has said that western governments must do more to be seen as anti-terror rather than anti-Islam.
David Miliband's assessment came after US president Barack Obama said foreign policy decisions made by the previous administration had been based on "fear rather than foresight".
Obama, as part of his reassessment of foreign policy, said that previous administrations "went off course".
"All too often our government made decisions based on fear rather than foresight," the US president said.
"Instead of strategically applying our power and principles, too often we set those principles aside as luxuries that we could no longer afford.
"During this season of fear, too many of us, Democrats and Republicans, politicians, journalists and citizens fell silent. In other words, we went off course."
Miliband backed Obama's stance, stating: "Too often we didn't show sufficient respect or understanding of the diversity of the Muslim tradition.
"We just talk of extremists and moderates. That doesn't do justice to the Muslim world."
The foreign secretary told BBC Radio 4's Today programme that this was a problem that all western countries need to address.
"Instead of being seen as anti-terror, what we were doing came to be seen as anti-Islam," he said. "That is a very important distinction that we have to retain."
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