In a BBC Radio 4 interview, Justin Welby called for faith leaders to take responsibility for countering tragedies committed in the name of religion.
He claimed there is a "a lack of religious literacy" among politicians and others dealing with terrorist threats.
He said that authorities don't understand "the basic tenets of the faith they are dealing with".
He explained: "They are often people who are unable to put themselves in the shoes of religious believers and understand a way of looking at the world that says that this defines your whole life, every single aspect of who you are and what you are."
Welby said religious scriptures have "been twisted and misused" to justify violence, but it's up to faith leaders to teach against religious violence and tackle problems with ideology.
Muslim and Director of Faith Forum for London, Mustafa Field, agrees with the Archbishop.
He told Premier News Hour that those that commit violence in the name of Islam have a poor understanding of their faith and often deal with identity crises.
Field said: "I think it's really important that faith is better understood and that people who are working to tackle extremism have a better understanding of this and engage with faith communities, because only together we're able to achieve that."
