This article analyzes how movies have been reproducing a pejorative and stereotypical storytelling regarding Muslims and Arabs for more than a century, mainly along a narrow-minded dichotomy between “bad” fanatic religious extremists or “good” non-religious secularized Muslims. The aim has moreover been to explore alternative storytelling combined with applying a model to discuss emotional engagement among movie goers. The conclusion is that mainstream movie culture is still indebted to stereotypical images of Islam/Muslims. But things are changing. More nuanced storytelling has been taking place lately, giving room for a broader spectrum of Muslim religious identity positions, including examples of religious wisdom and spiritual integrity, offering the audience imagery beyond the stereotypical “good” and “bad” dichotomy. Looking outside Hollywood and European mainstream films, new voices are heard, making way for a larger spectrum of positions.