With reference to the establishment of new chairs and centres for Islamic theology at Northern European universities, this article discusses how Christian and Islamic university theology may develop into a multi- or interreligious way of doing theology. Will these initiatives change the ways in which theology is done in academia, through institutionalized cooperation between theologians from different traditions? Having introduced the academic field of ‘interreligious studies’ the author further defines the term ‘interreligious theology’ in relation to confessional theology and comparative theology and argues that interreligious ways of doing theology are characterized by their relational and interactive approach, with a strong emphasis on agency. The article further explores the institutionalized aspect of interreligious theology – citing the classical example of Muslims and Christians reflecting together in medieval Baghdad, the late modern practice of ‘scriptural reasoning’, and the pluralization of theology in contemporary academia. Having noted the tension between interand trans-religious ways of doing theology, the article critically explores the metaphors of ‘third space’, ‘spaces in between’, and ‘home’.